There's a conundrum facing the tech industry in Ireland: space. In Dublin's so-called Silicon Docks, where most of the major tech companies are located, it has been well documented that there is a shortage of office space suitable for growing firms.
Take Intercom, for example. The San Francisco-headquartered firm has been growing steadily since it was founded in 2011 and has had an Irish office from the outset. It started off in Dogpatch Labs before moving on and is now on its fourth office.
It has done everything as it was supposed to: taken on a growing workforce in Dublin, outgrown its existing offices and planned for future growth. So it is understandable that there’s some frustration at hitting a brick wall when it comes to finding premises suitable for its expanding workforce in the city centre.
At the same time that the Office of the Dublin Commissioner for Startups is bigging up Dublin in an effort to persuade more people to come and see what Ireland has to offer, the company’s cofounder Des Traynor was talking about its struggles.
There is a list of issues. Long-term leases – typically 10, 15 or 25 years – are not suitable for fast-growing companies that work on business plans that run between five and seven years and that may need to move on from offices if they want to keep expanding.
Location is another. While there are plenty of offices available on the outskirts of the city and the commuter belt, with ample car parking spaces available, the typical workforce that companies such as Intercom are employing are more suited to areas serviced by public transport and bicycle routes and which are close to rental accommodation.
Add to that a desire to showcase Dublin and it all points to prime city centre locations that aren’t available.
In San Francisco and other tech hubs, property agents hungry for commission would push for deals to be done in a quicker timeframe.
Intercom’s experience isn’t unique. And the more tech companies locating here, the more it will be repeated.
It is nothing new that there is a shortage of office space in the city centre. That has been the subject of dire warnings from the ESRI in recent months, with estimates of up to a two-year wait for employers of 500 people looking for suitable accommodation. And yet, we’re still in the same situation.
It seems we are back in a situation where once again the property market will hold the economy to ransom.
