Google and O’Brien ink big­gest of­fice deal in Q3

Irish Independent - Business Week - - COMMERCIAL PROPERTY - Ronald Quin­lan

Google’s agree­ment to rent 58,000 sq ft of space at bil­lion­aire busi­ness­man De­nis O’Brien’s of­fice block at One Grand Canal Quay has emerged as the big­gest let­ting to have been agreed in the Dublin of­fice mar­ket in the three-month pe­riod to the end of Septem­ber.

The deal, the de­tail of which was first re­ported last Au­gust by this news­pa­per’s sis­ter ti­tle, the Sun­day In­de­pen­dent, rep­re­sented just over 10 pc of the 564,000 sq ft of of­fice space that trans­acted across 56 deals ac­cord­ing to Knight Frank’s lat­est quar­terly re­port on the Dublin mar­ket.

Some 2.2 mil­lion sq ft of space has been taken up in the cap­i­tal in the year to date, an in­crease of 200,000 sq ft on last year’s per­for­mance at the same point. The av­er­age deal size of 10,076 sq ft recorded in the lat­est quar­ter how­ever was much re­duced on the 15,266 sq ft av­er­age in the three months to the end of June.

Google’s en­try into a long-term agree­ment with Mr O’Brien to rent six floors at One Grand Canal Quay brings the to­tal amount of space the US tech gi­ant has taken in Dublin this year to just over 380,000 sq ft, with their foot­print in the cap­i­tal stand­ing at ap­prox­i­mately 1.1 mil­lion sq ft. Last May Google com­pleted a €300m deal to ac­quire the en­tire Bolands Quay scheme. Lo­cated be­side One Grand Canal Quay, the de­vel­op­ment will, upon com­ple­tion, com­prise 36,851 sq m (396,660 sq ft) of of­fice, res­i­den­tial, re­tail and cul­tural space, and be ca­pa­ble of ac­com­mo­dat­ing up to 2,500 work­ers.

And while there has been spec­u­la­tion in re­cent months that Google would be tak­ing of­fice space at Esprit’s Wa­ter­ways House, Knight Frank’s lat­est re­port con- firms that the build­ing, which sits di­rectly op­po­site Mr O’Brien’s of­fice, block was fully leased up in the third quar­ter with let­tings to four ten­ants oc­cur­ring.

The largest of these was to the Saon­group who took 12,644 sq ft. Other oc­cu­piers who took space in the scheme in the pe­riod in­cluded Tel­nyx, Sim­mons & Sim­mons and Stan­dard & Poor’s. In­ter­est­ingly, the lat­ter two com­pa­nies are be­lieved to be Brexit-re­lated, with Sim­mons & Sim­mons stat­ing pre­vi­ously that they would be set­ting up a Dublin of­fice be­cause of the vote, while Stan­dard & Poor’s pre­vi­ously an­nounced they were mov­ing 30 to 40 an­a­lysts out of Lon­don for the same rea­son.

Dublin city cen­tre dom­i­nated let­ting ac­tiv­ity, ac­count­ing for 53pc of all trans­ac­tions, while the west side sub­urbs ac­counted for 22pc of take-up, sig­nif­i­cantly sur­pass­ing its five-year av­er­age of 8pc. Take-up in the lat­ter was boosted by co-work­ing firm IWG’s tak­ing of 16,388 sq ft at the Blan­chard­stown Cor­po­rate Park. While the south sub­urbs ac­counted for 10pc of ac­tiv­ity, the north sub­urbs com­prised 7pc of the mar­ket. Its share was sup­ported by the sec­ond largest trans­ac­tion of Q3 which saw Kel­logg’s be­come the first ten­ant at Three Dublin Air­port Cen­tral where the com­pany is tak­ing 39,008 sq ft – a move that will see them re­lo­cate from their cur­rent base at the Air­side Busi­ness Park.

Com­ment­ing on the lat­est fig­ures, De­clan O’Reilly, direc­tor at Knight Frank, said: “A sig­nif­i­cant vol­ume of space has been re­served – par­tic­u­larly from the TMT (Tech­nol­ogy, Me­dia and Com­mu­ni­ca­tions) sec­tor – mean­ing we are likely to wit­ness a strong fin­ish to the year which could see of­fice take-up sur­pass the record level of take-up wit­nessed in 2017.”

At the heart of the ac­tion: Grand Canal Quay, as seen from Dublin’s tallest res­i­den­tial build­ing, the 17-storey Mil­len­nium Tower at nearby Char­lotte Quay

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.