Demand jumps for ‘health and well-being’ buildings in Irish commercial property marketSCSI report shows tenants will pay a premium for buildings that offer strong ESG and workplace credentials Fri, 04 Sep, 2026 – 00:50Martin Claffey
Supply constrains remain the key challenge in the Irish commercial property market but the market is continuing to stabilise, according to the latest report of the Society of Chartered Surveyors Ireland (SCSI).
The SCSI Mid-Year Commercial Property Market Monitor 2026 Report indicates a market which is moving towards a more sustainable growth phase following the volatility experienced in recent years. The report is compiled from surveys completed in June and July 2026 by chartered commercial and valuation surveyors. Prime office rents are forecast to rise by an average of 6% and capital values by 4% over the next 12 months, the report found. Industrial asset rents are projected to increase by an average of 4% and capital values by 3%.
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The report found occupier demand for building based on Environmental, Social and Governance principles (ESG) is a key driver of demand with three out of four respondents reporting that tenants are prepared to pay a premium for buildings that offer strong ESG and workplace credentials.
“Across the commercial property market, the first half of 2026 has been characterised by growing occupier confidence and a gradual recovery in investment activity. The combination of positive investment enquiries and limited availability suggests that investors remain interested in opportunities where asset fundamentals are strong,” said Bernadine Hogan, chair of the SCSI Commercial Agency Committee.
“The vast majority of respondents – 96% – anticipate increased tenant demand for health and well-being features in commercial buildings. Furthermore, 75% expect occupiers to be willing to pay more for these facilities, highlighting the growing importance of workplace experience, sustainability, and employee well-being in occupier decision making.” Ms Hogan said this trend has been the most profound development in recent market surveys, and properties offering strong occupational fundamentals, sustainability credentials and long-term income security are expected to outperform.
The report highlighted one SCSI agent, who said the improvement in office demand is being driven less by widespread business expansion and “more by occupiers upgrading, consolidating, and improving the quality of their accommodation. Many companies are taking the opportunity to relocate from older stock into best-in-class accommodation, often using relocation events to optimise the amount of space they occupy.”
Surveyors expect prime office rental values to rise
For prime office assets, 75% of surveyors expect rental values to increase while 63% expect capital values to rise. Expectations for secondary offices remain more cautious as nearly half the respondents foresee no change in rental or capital values, highlighting the continued polarisation within the office market.
The report said the continuing Middle East conflict and associated pressures on energy markets and global supply chains have introduced renewed uncertainty into the economic environment; however, the Irish domestic economy has remained comparatively resilient.
“The positive sentiment recorded in Ireland mirrors findings from the latest RICS Global Commercial Property Monitor, which ranks Ireland among the stronger-performing European commercial property markets, with sentiment improving further during Q2 2026,” said Ms Hogan. “However, our survey also highlights supply constraints as one of the defining challenges facing the commercial property market, with development viability being a major concern.
“CSO figures show the volume of non-residential building output fell 12% year on year in Q1 2026. “Higher construction costs, financing costs and planning delays have slowed the commencement of new projects. While some schemes are progressing, the development pipeline remains relatively shallow, particularly in the industrial sector.”
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