Arthur Cox pays €9m for Dublin offices

L

eading law firm Arthur Cox has bought a modern, five- storey office building a few hundred metres from its planned new headquarters at the junction of Earlsfort Terrace and Hatch Street in Dublin 2.

The firm has been renting the prominently located Dolmen House on Earlsfort Terrace for a number of years in addition to its extensive offices in the Earlsfort Centre, opposite the National Concert Hall.

It was one of eight interested parties who made formal offers for the 15-year-old block and emerged as the top bidder at close to €9 million

The legal firm has been paying a rent of €680,000 for the building (equating to €527 per square metre, or €49 per square foot), which has a floor area of 1,161sq m (12,500sq ft). There is an additional charge of €4,500 for each of the 15 basement car-parking spaces.

Arthur Cox had the option of availing of a break in its 25-year lease next June but with the planned new headquarters extending to 11,148sq m (120,000 sq ft) not due be completed until the summer of 2017 the firm decided to buy in Dolmen House at this stage. Its principal lease in the Earlsfort Centre is due to expire in 2017.

In the meantime, Clancourt Developments is currently clearing a site formerly occupied by an Office of Public Works office block before proceeding with a new €35-million, seven-storey building to accommodate Cox’s 600 Dublin staff. The firm has agreed an initial rent of about €419 per square metre (€39 per square foot) and €3,000 for each of the 40 planned car-parking spaces.

The rent is already considered somewhat on the low side because it was set more than 12 months ago when there were few takers for a substantial office block in the city.

Another high-quality office building currently being developed by businessman Denis O’Brien diagonally opposite Dolmen House is expected to attract rents starting above €538 per square metre (€50 per square foot) when the structure is more advanced. Similar rental thresholds are also expected in several other planned new office developments in the city because of the shortage of high-density floor plates.

The facade of Cox’s new, fourth-generation block will feature a strong framework of natural stone with glazed office space behind. It will target a LEEE gold rating with many energy efficient and environmentally friendly fittings including solar panels and rainwater harvesting. The top floor will be set back to include terraces.

The building will have a central atrium and an external courtyard to avail of daylight. There will be two basement levels, one for car parking, the other for plant and ancillary uses. The top-of-the-range facilities will include a spacious hall for seminars and other functions.

Arthur Cox is one of the largest full-service law firms in Ireland, with offices in Belfast, London, New York and Silicon Valley. Its turnover was estimated at €112 million in 2012