QRE secures APC for Cherrywood
Cherrywood's Strategic Development Zone in Dublin 18 has received a second fillip in 10 days with the news that process engineering company APC is to double its office space to 60,000 sq ft in Block G2 in the business park.
It follows from last week's announcement by Hines Ireland of its €30.5m deal to sell up to three SDZ sites to developer Cairn Homes with the potential for 300 new homes. Cairn has purchased two lots for €21.5m, with an option to purchase a third lot for €9.2 million.
The latest APC deal will provide a particular boost to the Dun Laoghaire Rathdown County Council (DLRCoCo) as its wholly-owned company, DLR Properties Ltd, owns Block G2 and another office block in Cherrywood.
DLR Properties also owns development land at Cherrywood SDZ, and it recently made a submission to DLRCoCo setting out an urban form development framework for its Town Centre site.
Late last year APC signed a lease for 30,000 sq ft in Block G2, and has now agreed to take a further 30,000 sq ft from Q1 2016 at a rent believed to be about €20 per sq ft.
Conor Whelan of agents QRE says the APC letting marks a further milestone in the development of Cherrywood into a leading office location for international employers.
APC was founded in 2011 and provides process engineering services to the pharmaceutical and chemical sectors.
DLR Properties' Cherrywood buildings comprise the 60,000 sq ft Block AA as well as Block G2 which extends to 120,000 sq ft. Joint agents QRE and BNP Paribas Real Estate are quoting €25 per sq ft for the remaining space in G2 which comprises 30,000 sq ft on each of the ground and first floors.
Mr Whelan says rents for Grade A office space in the south-east Dublin suburbs have risen from around €15 to €16 per sq ft in 2013 to €23 to €25 per sq. ft today.
He says there is good activity in the suburban office sector as occupiers are either expanding within this market or are relocating from city centre locations to take advantage of lower occupancy costs.
"Typically total occupancy costs in prime suburban locations, which include rent, rates and service charges will be half of those for prime buildings in the city centre. Suburban buildings, which also tend to be very efficient in terms of floorplate size and depth, are therefore attractive to larger scale occupiers, particularly if well served by good public transport infrastructure," he adds.
Pam Kearney, chairman of DLR Properties said: "Cherrywood continues to fulfil its original vision of developing a major business hub outside the city."
Dr Mark Barrett, managing director APC said: "this substantial premises could be designed to meet our precise requirements in such a well-connected location".