Green Property Company has delivered a much needed boost to the suburban office market in Dublin by completing contracts with Microsoft to rent it one of the two large blocks in the Atrium office development at Sandyford, Dublin 18. Although the deal was on the cards for some time, there were fears that the problems being experienced by the high technology sector might delay it further. Microsoft is to consolidate its European Operations Centre and sales and marketing operations in the six-storey building which has 180,000 sq ft of space. It will be paying a rent of £18.50 (#23.49) per sq ft under a 20-year lease which will provide for a break clause in the 15th year. It will also have 340 car-parking spaces at £750 (#952) per annum. The fit-out of the block will commence next September. With a range of tenants looking for space in the identical six-storey building in The Atrium scheme, Green is expected to let it on a floor-by-floor basis shortly. Stephen Vernon, Green's managing director, said they were particularly delighted to announce the letting of the entire block to Microsoft.
Strong growth being driven by innovative new products like XBox, Office XP and Windows XP across all Microsoft European operations has meant that the company has outgrown its existing accommodation at Blackthorn Road. Kevin Dillon, managing director of Microsoft European Operations Centre, said that south Co Dublin had been home in Ireland to the 1,800 people who manage all their European, Middle East and African product development, operations and Irish sales functions. In addition, key new products would be developed and launched across 85 countries from Sandyford throughout the next year. Microsoft's decision to settle for the Atrium development comes two years after Green funded a £57.2 million (£72.6m) purchase of Microsoft's European Product Development Centre's freehold office portfolio in South County Dublin Business Park. The purchase and 20-year leaseback of the Microsoft campus was, according to Mr Vernon, the first purchase and 20-year leaseback arrangement of its type in Ireland.
Referring to the suburban office market, Mr Vernon said that many of these schemes have suffered from a perception of isolation in the past, with doors facing on to often featureless main roads, while the environment tended to be less than friendly and welcoming. "The use of the atrium in both buildings will help to build a sense of community as well as shielding employees from the sometimes unforgiving Irish weather. In this way the development offers the vibrancy and immediacy of an urban location in an unrivalled suburban setting."
Michael Donohoe of Colliers Jackson Stops played a key role in arranging the letting, representing both Green and Microsoft. Palmer McCormack is joint letting agent.
