Dublin 13th in Global Cities survey
Dublin's attractiveness to major international companies has been reinforced with the 2018 Global Cities Report from Knight Frank finding the cost of locating 100 workers in the Irish capital to be 38pc lower than it is in London.
While the consequences of Brexit and Donald Trump's first year as US President may still be unfolding, Knight Frank have for the first time sought to give employers a ready reckoner of the costs associated with employing 100 people in cities across the world based on the current rates for office space and average salaries.
Of the 19 global cities studied for the report, Dublin emerges in 13th position, with Knight Frank estimating that it costs €3,436,626 a year to employ 100 staff in conventional office space.
Although that figure compares very favourably with the €4,754,721 cost associated with locating in London's West End and the €4,114,296 cost incurred in the City of London, Dublin is more expensive than its two greatest Brexit rivals.
According to the study, employers looking to locate 100 staff in Frankfurt would pay an average of €3,235,552 a year, while those companies choosing to base their operations in Amsterdam would absorb an average cost of €2,987,471 annually. Dublin does emerge as a less expensive option than another of its main rivals for post-Brexit relocations. Companies choosing Paris will pay an average of €3,490,445 to locate 100 workers, the report finds.
The cost of locating employees in Dublin appears far more attractive once it is compared to its non-EU global peers. Zurich emerges as the most expensive city in the world to locate 100 employees with an annual cost of €6,740,866. Knight Frank attributes this largely to the high salary costs of the Swiss city's banking and asset management sectors.
New York emerges as the runner-up in the rankings with its average annual cost of €5,884,812 while San Francisco is in third place with costs of €5,680,141.
Hong Kong, where office rents are the highest in the world, takes fourth place with an average annual cost of €5,059,505. Boston comes in fifth position at €5,035,611.
Commenting on the report's findings, Declan O'Reilly, director at Knight Frank in Dublin, said: "Flexibility' has become a key word in the Dublin office occupier's lexicon. Flexibility is highly valued in the tech industry due to the fast evolving nature of the sector which demands a high degree of adaptability to changing circumstances.
"With tech accounting for the lion's share of Dublin's office take-up, with Google, Facebook and Twitter all having their European Headquarters here, the industry has brought this emphasis on flexibility to Dublin's occupier market."
Referring to the impact of that requirement for flexibility on Dublin's landlords, O'Reilly added: "We are seeing the traditional 25-year institutional lease of old giving way to more flexible terms of shorter duration. The drive for flexibility is also influencing occupier fit-out habits, with activity-based working and co-working culture set to take-off in a significant way.
"Lastly, tech employees are seeking the flexibility allowed by living close to work, which is driving demand for city centre apartment living."
Yearly cost of basing 100 staff in top global cities
1 Zurich €6,740,866
2 New York €5,884,812
3 San Francisco €5,680,141
4 Hong Kong €5,059,505
5 Boston €5,035,611
6 London West End €4,754,721
7 Sydney €4,259,822
8 Tokyo €4,153,864
9 Chicago €4,134,746
10 London City €4,114,296
11 Singapore €3,916,097
12 Paris €3,490,445
13 Dublin €3,436,626
14 Stockholm €3,391,774
15 Frankfurt €3,235,552
16 Amsterdam €2,987,471
17 Warsaw €1,383,982
18 Cape Town €1,379,937
19 Bengalaru €1,072,125
* Based on average salary cost, and current market office rents. Source: Knight Frank, Newmark Knight Frank, Sumitomo Mitsui Trust Research Institute