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Tech sector drives Dublin office deals in third quarter

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Real estate: Office take-up is down by 46pc on last year’s figures

Real estate: Office take-up is down by 46pc on last year’s figures

Real estate: Office take-up is down by 46pc on last year’s figures

As much as 230,000 sq ft of office space was transacted in Dublin in the three months to the end of September bringing take-up for the first nine months of the year to 1.1m sq ft according to figures compiled by Knight Frank.

"While this is down 46pc on last year, it still represents a relatively strong level of take-up given that most companies are still functioning on a working from home basis," said Declan O'Reilly, the firm's director of offices.

He has not seen "any movement in quoting rents across any of the major schemes across Dublin as of yet".

A number of high profile tech and pharmaceutical companies expanded their Dublin operations in Q3.

The largest transaction saw Microsoft take 44,000 sq ft at 3, Dublin Landings to complement its South County Business Park space.

In South Docklands, cloud communications platform Twilio sub-let 20,493 sq ft from State Street at 78 Sir John Rogerson's Quay. In total, the tech industry was the main driver of activity accounting for 34pc of take-up and reflecting how companies in these sectors have seen their value increase during the pandemic and will need increased office space to house their growing workforces following the pandemic.

Pharma had the second highest market share comprising 24pc of take-up with Gilead letting 31,301 sq ft at North Dock where it is planning to hire 140 employees by 2022.

Meanwhile, Regeneron is expanding its Dublin operations by sub-letting 13,637 sq ft from Bord Gáis at One Warrington Place which will see them move from Europa House on Harcourt Street.

The State accounted for 19pc of take-up which was driven by the OPW's taking of 42,060 sq ft at 1GQ.

Construction activity was strong in Q3 with 727,000 sq ft of office space delivered. This included Mapletree's The Sorting Office (203,000 sq ft), TIO's North Dock (201,000 sq ft) and Ryanair's Airside Green (120,000 sq ft).

Mr O'Reilly says that as productivity starts to dip and as workers display working from home fatigue, along with a discussion as to the longer term impacts on people's physical and mental health, he expects many companies will move back towards 'work from office' strategies, albeit perhaps with more flexibility than heretofore.

Irish Independent