One of the biggest commercial property real estate agents in the Republic, Jones Lang LaSalle, has reported a 50 per cent increase in profits on the back of significant levels of business in the sector.
The company, which has acted on some of the largest property transactions of recent years, particularly in Dublin, posted a turnover of €14.6 million for 2005, up from €12.4 the year before. Operating profits rose to €2.6 million, from €1.7 million in the previous period - a jump of 50 per cent.
At a pretax level, the profits came in at €2.8 million, up from €2.2 million, a 27 per cent rise. The accounts were recently lodged with the Companies Registration Office.
But the company warns that the biggest risk it faces is an economic downturn.
"The key risk faced by the company is a downturn in the Irish economy which could lead to a decline in the commercial property market in Ireland," the accounts state.
However, the accounts are upbeat about the commercial property sector.
"The company is engaged in the provision of advice on all aspects of commercial real estate. The directors expect these activities to continue to grow for the foreseeable future".
The firms's own research shows that overall returns from commercial property in Ireland grew by 32.4 per cent in the year to the end of September 2006, the highest growth rate seen in the sector since 1998, when the country was experiencing exceptional economic growth.
In particular, there has been a surge in the value of industrial properties, while the retail sector led the way in terms of rental increases.
Overall capital values were up by 26.7 per cent in the year to the end of September.
Industrial property managed a capital value growth during a year-on-year rise of 24.1 per cent.
Jones Lang LaSalle recently expanded its Dublin office, with the appointment of 20 new staff across all of its areas of operations, although staff numbers were down in 2005.
The company recently acted as a co-agent on the 25 acre South Wharf site beside Sandymount Strand in Dublin 4.
This was later bought by a consortium led by developer Bernard McNamara and the Dublin Docklands Development Authority.
The company's costs have been rising during the 2005 period, with staff costs up from €8 million to €8.9 million.
The average number of employees was 107, down from 109. The company has a large number of directors - 12 in total - and they were paid a total remuneration of approximately €4 million. This included pension provisions.
Net assets - assets minus liabilities - stood at €15 million at the end of 2005, up from €13.1 million in 2004.
All of the company's revenues arose in Ireland, but the group's ultimate owner is Jones Lang LaSalle, a US corporation based in Chicago, Illinois.
