Ireland’s commercial real estate sector expects lease terms to become more flexible for tenants in the future as the industry adjusts to post-pandemic realities.

Almost half of Ireland’s real-estate sector expects commercial-lease terms to become more flexible for both tenants and landlords, a new survey by Mason Hayes & Curran has found.

The law firm surveyed more than 250 real estate professionals at a webinar in February on landlord and tenant legislation. The event discussed the nuances of commercial lease renewal rights and explored the legal and strategic considerations involved.

Ireland’s commercial property sector, particularly the office sector, has come under pressure in the aftermath of the pandemic. Hybrid working arrangements have eaten into demand for office take-up while many large employers, most notably in the global tech sector, have reduced their employment numbers in response to shifting market forces. This accounts for a significant change in demand for office space in Dublin.

Meanwhile, rising interest rates have made the cost of borrowing and servicing property-related debt more expensive for landlords and commercial property owners.

While an overwhelming 81% of real estate professionals said the current rent review process is fair, almost half said they would like better access to market data. 61% of professionals said their main aim when entering rent review negotiations is to achieve market-aligned rates and just 20% said they are mainly concerned with securing long-term occupancy.

The survey results also dealt with the challenges surrounding renewal rights. A significant 45% of respondents named negotiation leverage as the most challenging aspect of the process, with clarity and fairness of terms following closely at 35%.

Real-estate partner Marcus Kennedy explained, “Under landlord-and-tenant law, a critical provision exists for tenants operating a business from a premises for an uninterrupted period of five years.

“The tenant is entitled to renewal rights, or in simple terms, a new lease. This is commonly referred to as business equity. The renewal-rights process protects this equity and fosters stability and continuity, ensuring businesses can plan with confidence.”


NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website, or email