There are some signs of life in the office market but highly competitive rents are the order of the day, writes JACK FAGAN
A DIVISION of Bord Gáis is to rent a distinctive new office building at the junction of Lower Mount Street and Warrington Place in Dublin’s south inner city. The letting of the 5,211sq m (56,103sq ft) block is the largest transaction of its kind in the city this year and comes just as agents are reporting a sharp pick-up in enquiries for office accommodation.
Elsewhere in the city, two new entrants to the Irish business world are to take more space. Walker Global Network is to rent 975sq m (10,500sq ft) in the Dublin docklands, and Maxim Integrated Products is to lease an almost similar volume of space at Beech Hill Office Campus at Clonskeagh.
The high quality eight-storey office block – known as One Warrington Place – had been expected to set a record for rents in the city when it was launched by developer David Arnold early in 2008. The highest rent at that stage was €700 per sq m (€65 per sq ft) for a suite at the newly developed 75 St Stephen’s Green.
The worsening economic crisis and the dramatic fall in property values since the official launch meant that the joint letting agents had to settle for a significantly lower rent in the region of €409 per sq m (€38 per sq ft).
Arnold was happy to settle for a strong covenant in Bord Gáis Energy, the retail arm of the semi-State body, which has signed a new 25-year lease with a break option in year 10. Thirty-one basement car-parking spaces are being rented at around €3,500 each.
The joint letting agents were Deirdre Hayes of HT Meagher O’Reilly and James Nugent of Lisney while Bord Gáis was represented by Donal O Buachalla.
One Warrington Place has already acquired a landmark status overlooking the Grand Canal along one of the busiest entrances to the city centre. The façade includes a large curved drum to add drama and a focal point at this important junction.
The new block has a B1 energy rating which will mean that running costs will be almost half those of a standard modern third generation building. Air conditioning alone will show a saving of 40 per cent following the installation of a solar deterrent system. Water usage will also be reduced by 20 per cent as a result of a new rainwater harvesting system.
Walker Global Network is likely to be paying over €322 per sq m (€30 per sq ft) for the first and second floors in The Anchorage, an 18-month old building overlooking the Liffey in the south Dublin docklands. The other tenants in the now fully occupied 2,517sq m (27,100sq ft) building include Bloomberg, Baxter Financial and d’Amico International Shipping. Walker Global Network serves clients in its markets with a combination of local knowledge and global reach – all aimed at improving business performance. Jones Lang LaSalle handled the letting and BNP Paribas advised Walker.
Maxim Integrated Products is to set up a new international business, financial and technical support services centre on the top floor of Beaver House in Clonskeagh where it will occupy 929sq m (10,000sq ft). Nicholas Corson of agent Finnegan Menton said Beaver House was chosen, not only because of the high quality accommodation, but also the “competitiveness of the terms and flexibility of the lease afforded by the landlords”.
Finnegan Menton and joint agents Jones Lang LaSalle are quoting €193 per sq m (€18 per sq ft) for the remaining 1,858sq m (20,000sq ft) in Beaver House.
