Sandyford office investment comes with a €1.05m price tag

AN office suite investment in Q House, Sandyford in South Dublin is for sale through QRE Real Estate Advisers with a €1.05 million price tag.

Located on the second floor of the Furze Road scheme, Suite 206 extends to 251 sq m (2,700 sq ft) and comes with six car parking spaces.

It is let to Olas Software and Training Development Limited on an effective full repairing and insurance lease which is due to expire in December 2023.

The contracted annual rent of €82,000 equates to about €27 per sq ft. and €1,500 per car space.

Bryan Garry of QRE, who is handling the sale, says those rent levels indicate significant reversionary rental potential when the lease expires.

It also reflects an attractive net initial yield of 7.1pc and a capital value of €389 per sq ft.

Mr Garry expects strong interest in the property due to the attractive yield, strong covenant and well-established office location.

“Given the ongoing uncertainty with financial markets and near zero interest rates, the sale of the unit should also appeal to pension investors.

It may also suit an owner occupier who wishes to secure immediate income prior to taking occupation,” he adds.

Although located inland, its elevation means that the suite has views over Dublin Bay.

It is accessible from the nearby M50, Green Luas, bus services and the N11.

The latest report from CBRE showed Dublin office take-up totalled 22,194 sq m in the third quarter of this year, a sharp rise from the almost dead market of the second.