Business

Thursday 19 April 2018

'False economy' to relocate civil servants

Brian Moran:
Brian Moran: "Office occupancy costs for a typical business are somewhere between four and six per cent. If they go up to 7pc, it actually doesn't matter as long as the office and the human capital is being productive" (stock photo)
Ronald Quinlan

Ronald Quinlan

The managing director of US real estate giant Hines' Irish operation, Brian Moran, has described suggestions that Government departments should relocate their operations from Dublin city centre to avail of less expensive office space elsewhere as a potential "false economy".

Asked about the Department of Health's decision to enter into a long lease on 143,000 sq ft at the Larry Goodman-owned Miesian Plaza (formerly the Bank of Ireland HQ) on Baggot Street, Moran said: "It may be a false economy for a Government department to relocate because then they're too remote from the lawyers or consultants they have to engage with to be productive."

Commenting on the extra cost of paying for office space in Dublin, he added: "Office occupancy costs for a typical business are somewhere between four and six per cent. If they go up to 7pc, it actually doesn't matter as long as the office and the human capital is being productive.

"The State should be thinking the same way. It's not about the headline saving on the rent, it's about productivity and where best to locate people to be effective."

Sunday Indo Business

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