Wednesday 20 June 2018

Amazon looks to deliver expansion of its Dublin office

Burlington Plaza, Amazon's current Dublin home
Burlington Plaza, Amazon's current Dublin home
Peter Flanagan

Peter Flanagan

Amazon is looking at options to expand its operations in Dublin and has hired advisors to secure more office space in the city.

The company employs close to 800 people on three floors at Burlington Plaza in Dublin 4. However, it is exploring options to take up more space elsewhere in the city.

The retail giant is thought to have secured an option over another city centre office block for the next six months.

That in itself is an unusual move in the current market. With prime office rents in the capital continuing to rise, and most deals being done in the mid €50s per sq ft and forecasts to go even higher, the fact that a developer is willing to take office space off the market for six months has raised eyebrows in parts of the industry.

Amazon is the latest firm to look to expand its operations in Dublin, but like others, it is not seeking to take an entire building. Instead, figures within the industry expect the retailer to sign on for 20,000 sq ft to 40,000 sq ft. That would be enough space for between 150 and 300 extra employees.

A string of blocks around the capital which are either being newly constructed or refurbished are seeking tenants at present. One of the most notable is the Vertium Building which is close to Amazon's current offices on Burlington Road.

That block is a 172,000 sq ft property and is being constructed by Ronan Group and U+I. The project is being backed by Germany's Union Investments.

That block is being marketed to prospective tenants by Savills and JLL.

The company's property moves came in the same week that it emerged that staff at the Irish units of internet giant are set to reap a total of almost $50m (€44m) worth of share awards this year and in 2017.

The move comes as Jeff Bezos, the founder of the world's most valuable retailer, extolled Amazon as "the best place in the world to fail".

The company employs about 1,700 people in Ireland, roughly evenly split between its customer support operations in Cork and Dublin, and data centre facilities located around Dublin.

The company plans to build a data centre on the former Jacob's biscuits site in Tallaght to add to the number of data centres in the capital and wants to build two other facilities at locations around the city.

Combined, those projects are likely to propel Amazon's infrastructure spending here to beyond €1bn.

Sunday Indo Business

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