Dublin's most reviled office block - Hawkins House behind Burgh Quay - is likely to be redeveloped now that the Department of Health and Children as decided to move to Parnell Street, writes Jack Fagan
The Department of Health and Children is to move to a new office building in Dublin's Parnell Street, opening the way for the sale of the notorious Hawkins House, the 1960s office block at Poolbeg Street, behind Burgh Quay.
When the relocation is complete, the Office of Public Works is expected to seek over €60 million for one of Dublin's most rundown and ugliest office buildings.
Health personnel have been told that they will be moving to Chapel House, a newly completed office block over the Penneys store on Parnell Street. Formal contracts have yet to be completed, but the department has agreed to lease the 10,219sq m (110,000sq ft) building for a five-year period before moving to the current headquarters of the Department of Education on Marlborough Street.
The Department of Education is due to move to Athlone within three years as part of the Government's decentralisation process.
The decision by the Department of Health and Children to settle for Parnell Street has obviously been influenced by the successful rejuvenation of the area and, even more importantly, by attractive rental terms offered by developer Liam Carroll. The Department of Health and Children will be paying a rent of €269 per sq m (€25 per sq ft) - almost half the going rate for third generation space in the city centre.
However, with Carroll now one of the most prolific office developers in the city (a few years ago his company, Zoe, was also the biggest apartment developer), he is in a position to undercut the opposition in the rental market.
His biggest coup last year was to secure Google for a newly completed office block at Barrow Street. To get the tenant, he offered a 25 per cent discount - €322 per sq m (€30 per sq ft) - for top class accommodation. The internet company has since taken double the original space and is occupying 9,290sq m (100,000sq ft) and still expanding.
In Parnell Street, Carroll will obviously be hoping that the Department of Health and Children will be staying considerably longer than the five-year lease period.
In the meantime, the department will be spending around €538 per sq m (€50 per sq ft) on fitting out the building which has been lying idle since it was completed about 18 months ago.
Carroll is advised by office specialist Willie Dowling of CBRE.
There will be no shortage of developers chasing Hawkins House - a 12-storey, 15,000sq m (161,458sq ft) block - because of its superb location between Tara Street Dart station and Trinity College.
It will be no surprise if Hawkins House is redeveloped in conjunction with an adjoining office block let to An Post and facing on to Townsend Street.
An Post has so far failed to assign the lease of the office block which, like Hawkins House, has considerable parking facilities at street level. The overall site offers one of the best redevelopment opportunities in the city.
