Strong Q1 Office Lettings In Dublin

04 Apr 2019 | 01.09 pm

Strong Q1 Office Lettings In Dublin

January to March 2019 review from BNP Paribas Real Estate

04 Apr 2019 | 01.09 pm

The first quarter of 2019 was the third strongest on record for total office take-up in Dublin, with 133,300 sq m of space occupied or committed to, according to a BNP Paribas Real Estate report.

That would be an increase of 66% on the first quarter of the previous year, much of it down to a a significant number of large individual lettings in Q1 2019, according to the company.

Multinational tech companies continued to expand rapidly, with the sector accounting for more than 75,000 sq m in Q1, representing 57% of take-up overall. The largest letting of the quarter involved a Salesforce pre-let of more than 43,000 sq m at Spencer Place — now dubbed ‘Salesforce Tower’.

There was also a letting of almost 16,000 sq m to Facebook at Nova Atria South, Sandyford, and of 9,160 sq m to DocuSign at 5 Hanover Quay.

BNPRE had of research Kate Ryan said: “Large multinational tech companies are expanding at a rapid pace and accounting for the lion’s share of overall office take-up. While these large deals are prevalent of late, more than 60% of all lettings in Q1 fell within the sub-500 sq m size band. This would seem to dispel concerns that the serviced office market has hampered the market for lettings at this end of the scale.”

The report also notes that the public sector has been active, accounting for 31% of take-up and with the OPW being particularly active. The agency took up more than 21,500 sq m in three properties, including the Irish Distillers Building in Smithfield and Bishop’s Square in Dublin 2. The Central Bank also completed the acquisition of almost 20,000 sq m at 4 and 5 Dublin Landings on North Wall Quay.

Brexit Factor

Brexit refugees were another source of demand, as  more than 70 companies have announced plans to move to or expand in Dublin since the 2016 vote.  More than 28,500 sq m has been leased to such firms, including JP Morgan, Aptiv, Coinbase and Bank of America. US bond ratings agency Kroll opened its first Irish office and new EU headquarters at 6-8 College Green, with plans to create 100 jobs in Dublin over the next three years.  

Other recent new entrants include Berkshire Hathaway and US law firm Tully Rinckey. The tech boom in Dublin is likely to be in some way linked to Brexit too, with US multinationals expanding in Ireland rather than in the UK, with a view to retaining access to European markets.

The so-called ‘city fringe’ — Dublin 3, 6, 7 and 8 — has benefited too, with a jump from 2,790 sq m in Q1 2018 to 18,950 sq m leased in Q1 2019, or 14% of the total.

Notable developments due for delivery this year include One South County in Sandyford and Dublin Airport Central, in north county Dublin.

Top 10 Deals Q1 2019

Building Location      Tenant  Quantity Sq Ft    Quantity Sq M 
Salesforce Tower’, Spencer Place Dublin 1 Salesforce 470,000 43,664
Nos. 4 & 5 Dublin Landings Dublin 1 Central Bank 201,000 18,674
Irish Distillers Building, Smithfield Dublin 7 OPW 180,000 16,723
Nova Atria South, Sandyford Dublin 18 Facebook 172,000 15,979
Ground to Third Floors, 5 Hanover Quay Dublin 2 DocuSign 98,628 9,163
Fourth to Sixth Floors, Bishop’s Square Dublin 2 OPW 46,895 4,357
Unit 3, Swords Business Campus,
Swords
Co. Dublin Oasis Group 23,694 2,201
Trident House, Blackrock Co. Dublin Zurich Life 18,484 1,717
Part Ground Floor, Building 11,
Cherrywood Office Pk
Dublin 18 Mater Private 14,499 1,347
Ground and First Floors, 21 Charlemont Dublin 2 Nitro 11,940 1,109
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