Office MarketAccenture, the global management consultancy firm, is moving its IFSC workforce to 1 Grand Canal Square, one of the most high-profile buildings in Dublin's rapidly developing docklands area.
It is believed the firm, formerly known as Anderson Consulting, is paying a top line rent of between €624 and €646 per sq m (€58 and €60 per sq ft) for 2,323sq m (25,000sq ft) of space.
While demand for property in the docklands has jumped over the past few years, this latest letting puts the area on a par with prime city centre rates as Accenture's lease on the fourth floor of 1 Grand Canal Square matches the recently achieved rent levels at 75 St Stephen's Green.
A few years ago office sites in the docklands were competitively priced as developers tried to attract the big-name tenants.
Some companies, such as McCann Fitzgerald and Dillon Eustace, bagged millions after negotiating lucrative sale and leaseback deals.
But the docklands is now a top business district with rents equivalent to levels in Dublin 2 or the IFSC. And 1 Grand Canal Square, with its sophisticated modern design and high-spec interior, is widely regarded as one of the area's best office developments.
According to industry sources, the five-storey property was set to become the new headquarters for top law firm William Fry, which has been on the hunt for new premises for some time. However, the deal fell through at an early stage in the negotiations.
It is understood that landlord Roy Studwick's initial expectation was to let the development to a single anchor tenant. But, as with Garret Kelleher's property at 75 St Stephen's Green, market conditions have forced him to change tack and accept a multi-letting. Industry sources claim that although such a strategy is more complex, it often generates higher rental income.
1 Grand Canal Square is one of the few remaining properties in the south docklands where there is still office space available and its high-profile location, next to the Daniel Libeskind 2,000-seat theatre and the five-star Meridian hotel, which are scheduled for completion by 2010, add to its appeal.
Developer Simon Kelly has already opened one of his Fresh food stores on the building's ground floor and Café Java will also operate an outlet there within the next few weeks.
Accenture is the largest management consultancy firm in the Republic and has been operating in Dublin since 1969.
The company's Irish headquarters are at Upper Grand Canal Street while its pan-European service centre division is operated out of the IFSC.
Accenture employs over 1,100 people in the Republic.
Property agents Palmer McCormack, which acted for Studwick, and Jones Lang LaSalle, which acted for Accenture, both declined to comment on the deal.
