Tech giants are poised to mop up more Dublin offices, boosting commercial rents in the city, a new report shows.<\/p>\n
Social media businesses Linkedin and Tiktok took two of last years three biggest office leases in the capital, where many multi-nationals have their European HQs.<\/p>\n
Letting agent HWBC says demand from overseas investors for Dublin offices, particularly technology companies, continues to be extremely strong.<\/p>\n
The property business adds that it is aware of several active mandates from multi-nationals seeking space in the Republics capital for 2022.<\/p>\n
It does not name prospective investors. Recent reports said Stripe, the payments company founded by Limerick brothers, John and Patrick Collinson, is seeking space for 2,000 workers in Dublin.<\/p>\n
Others claimed Russian tech specialist, Yandex, was hunting for a base in the city.<\/p>\n
HWBC s Dublin office report for the 2021 says foreign direct investors and tehnology businesses continue to dominate the market.<\/p>\n
Iain Sayer, HWBC s investment director, said that such companies are once again likely to feature on this years list of top 10 office deals in the city.<\/p>\n
Fears that the Organisation for Economic Co-operation and Developments agreement, diluting the Republics favourable tax regime, would hit this demand proved unfounded, notes the firm.<\/p>\n
Its report points out that State development agency, IDA Ireland, lured record levels of new jobs and investment to the Republic in 2021.<\/p>\n
HWBC argues that in some ways the new tax agreement could be viewed as a positive as it gives certainty.<\/p>\n
Average rent stablised at 57.50 a square foot in Dublin during 2021, but the property firm predicts this will increase as demand aided by multi-national interest picks up through this year.<\/p>\n
Easing restrictions and a gradual return to the office should support the recovery, assuming no new variants of concern emerge, says the report.<\/p>\n
HWBC believes that incentives for tenants will remain part of any deals done, but it does not see rents retreating.<\/p>\n
Businesses are also looking for buildings with low energy use, the firm cautions.<\/p>\n
In addition, climate change policy is pushing landlords and institutional investors to replace older offices with newer buildings that emit less carbon.<\/p>\n
Accountants KPMG took out the biggest lease in Dublin last year when they agreed to take 288,500 sq ft at Harcourt Square from listed developer, Hibernia Real Estate Investment Trust.<\/p>\n
Chinese social media behemoth, Tiktok, was second with its deal to lease all of the 216,000 sq ft in the Sorting Office from builder Marlet.<\/p>\n
Linkedins agreement to occupy 57,000 sq ft at One Park Place, Hatch Street, was number three.<\/p>\n
HWBC said 2021 was a bumpy year, with tough Government Covid curbs hitting business in the opening months.<\/p>\n
Overall, businesses agreed to lease 1.62 sq ft from landlords in Dublin last year, 26 per cent below the long-term average.<\/p>\n
Deals in the final quarter, spurred by KPMG and Tiktok, accounted for 60 per cent of the years total.<\/p>\n
Mr Sayer said the market had reached a turning point. The surge in demand in quarter four 2021 is continuing into 2022, which means it is unlikely that prime rents will fall any further, he added.<\/p>\n
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Tech giants poised to take up more offices in Dublin - The Irish Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Tech giants are poised to mop up more Dublin offices, boosting commercial rents in the city, a new report shows. Social media businesses Linkedin and Tiktok took two of last years three biggest office leases in the capital, where many multi-nationals have their European HQs. Letting agent HWBC says demand from overseas investors for Dublin offices, particularly technology companies, continues to be extremely strong. Continue reading