New figures show take up in Dublin's office market was 678,000 sq ft in the first six months of the year, below the long-term half-yearly average.
The data from property firm HWBC shows the technology sector remains active on new take up, but at a lower level than previous year.
The average deal size has dropped to 7,500 sq ft, with a total of 91 deals in the first half of the year.
Today's report notes a continued shift towards sustainable office spaces.
All the top leasing transactions in this period were for new sustainable 'green' offices, reflecting companies' efforts to upgrade their working environments, motivate employees to return to the office, and address climate concerns.
Most lettings involved buildings with a minimum BER B rating or better, making older office stock increasingly challenging to lease.
The figures show that the Dublin office vacancy rate has jumped to 14.4% for the first six months of the year.
It expects that trend to continue, with 3 million sq ft of new office space expected to be completed by the end of 2024.
But it added that few new construction starts are expected from 2024 onwards, potentially creating a shortage of high-quality office space, especially at the premium end of the market.
"We anticipate a market sentiment shift in the first half of 2024 as capital values stabilise, and new supply slows down," said Paul Scannell, Head of Offices at HWBC.
"This correction, which began in the first quarter of 2022, is well underway, and we expect to see the market recover in the coming years, driven by a growing demand for the highest quality office space," he added.
