WITH OFFICE rents still falling because of weak demand and high vacancy rates, Dublin has moved from the 14th most expensive office location in the world to 17th, according to a new survey released by Lisney and its international partner Cushman Wakefield.

Total occupancy costs (rent plus taxes and service charges) for prime space in Dublin at the end of 2009 were €511 per sq m (€47.50 per sq ft) compared to €620 per sq m (€57.60 per sq ft) a year earlier.

James Nugent, director of offices at Lisney, says take-up in 2009 was well down on previous years, vacancy levels reached a record high of 22.6 per cent and, according to the Lisney rental indices, prime rents fell by 36.5 per cent.

For occupiers this had been very good news with exceptional deals on offer. “We anticipate that 2010 will present further opportunities for occupiers seeking space. However, vacancy levels, particularly in good quality city centre offices, should start to fall,” says Nugent.

The survey showed that occupancy costs in all leading global cities fell during 2009, the first such worldwide decline since 2003. Dublin experienced the second biggest fall in Europe at -38 per cent, only trailing Kiev in Ukraine which fell by 50 per cent in 2009. The survey noted that even previously resilient office markets were affected, including London’s West End, which slipped by 25 per cent and Warsaw’s central business district which recorded a decline of 24 per cent.

In the rankings of the world’s most expensive office locations, the top three cities remained constant with Tokyo moving into first place from second with occupancy costs totalling €1,441 per sq m (€134 per sq ft); London’s West End moved from third to second place with costs of €1,220 per sq m (€113 per sq ft); while Hong Kong fell from first to third position with costs of some €1,207 per sq m (€112 per sq ft).