Stalled office market set to get moving

The Irish Times 03/09/2010 12:46

The controversial Dublin Docklands Development Authority is to relocate its headquarters from a new office building at Sir John Rogerson's Quay in Dublin 2 to its original premises at North Wall Quay.

There is significant demand for office space in the Dublin market as tenants take advantage of break options to seek better value, writes JACK FAGAN

THE STANDSTILL affecting the Dublin office letting market over the past six months is set to end with a large number of companies now looking for high quality space mainly in the Dublin docklands and the south of the city.

The renewed demand comes at a time when the volume of vacant space is at its highest for years, rents have fallen back and many landlords continue to offer a range of incentives, including fit-out, to attract firms with a good track record.

The companies which have instructed office agents to find suitable accommodation include the Central Bank, Bord Gáis, ESB, National Irish Bank, eBay, Bentleys, Regis, Yahoo and LinkedIn. AIB Capital Markets is also expected to renew its search for a substantial new office block when the bank gets over its present difficulties.

Most of the companies looking for space are availing of break options in their leases to shop around for better located third generation buildings at discounted rates. Some of the tenants will also be demanding full fitouts because of funding difficulties during the current banking freeze.

James Nugent, who heads up the Lisney office division, says he believes that newly built office blocks of exceptional quality would all be taken up this year. He also expects rental growth to return sooner than expected. Well located third generation office blocks, which had been letting at the mid to low €30s per sq ft (€322 per sq m) are now making in the late €30s per sq ft (€410 per sq m), he says.

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