According to an article in the Irish Times, the demand for office space in Dublin is slowly increasing. In addition to a gradually improving economy, one of the reasons for this is the advantage of break options and better value for tenants.
The standstill over the past six months is now set to end, because many companies are looking for high quality office space in the docklands and to the south of the city.
For Dublin, this is an advantage with a high volume of vacant space in the city. Available office space is at its highest level in years. At the same time, renters can expect incentives such as lower rents and other features specifically designed to attract firms with a good track record.
The highest demand is for rental leases that include break options, where these apply to third-generation buildings in good locations. In addition, it is anticipated that potential tenants will also require full fit-outs as a result of funding difficulties.
There is also considerable office space available in newly built blocks. James Nugent, head of the Lisney office division of AIB Capital Markets, is very positive about such newly built space. He said that all such space of exceptional quality will be occupied during 2010.
Together with AIB Capital, companies who are currently in the market for office space include the Central Bank, Bord G?is, ESB, National Irish Bank, eBay, Bentleys, Regis, Yahoo and LinkedIn.
According to Mr. Nugent, current estimates of overall vacancy rates for offices in Dublin amount to 22 per cent. In addition, viewings of vacant office space has significantly increased since the beginning of 2010.
