McConnells, the largest Irish-owned advertising agency, is not renewing the lease on its Dublin headquarters at Charlemont Place after 35 years.

Instead the company, which employs about 105 staff, is seeking new office space two to three miles from the city centre. Chief executive Jarlath Jennings said the move should not be seen as negative but rather a chance for McConnells to move to a more modern, state-of-the-art premises. The company was facing a rent review from September.

McConnells is one of the longest established tenants in the Charlemont Place area. Also located in the vicinity is the Stakis hotel.

It is understood a property group involving developer Bernard McNamara holds the lease to the building. It is expected to redevelop the site. The site is 16,000sq m and Mr Jennings said the company would need a similar amount of space in its new building.

He said there was no point in moving into an outlying area because the firm's clients liked to come into the city centre to do business.

Mr Jennings said the company might manage to set up in a new premises by Christmas, but it could be slightly after this. He said the company would not be making major savings by moving to the new premises.

In recent months the company, and its media buying arm MCM, has lost several high-profile contracts, including the National Lottery, Masterfoods and Kelloggs.

However, the company recently managed to retain the AIB media buying/planning account despite opposition from a number of internationally aligned agencies. AIB is among the key sponsors of the Ryder Cup and is expected to spend additional sums this year in support of this relationship.