Workspace in Dublin’s Digital Hub remained in high demand last year despite the Government’s plan to wind down the agency and redevelop its property assets for social and affordable housing.
Based at a 5.6-acre site off Thomas Street in the Liberties, the hub plays host to some 48 digital and tech companies, many of them start-ups, offering them flexible office arrangements and business support services.
New figures published on Thursday show that the Digital Hub Development Agency signed 29 new leases last year, 22 of which were with new companies. Two other companies were longer-term alumni of the hub that signed a new lease, while the remaining five were companies that left during the height of the Covid-19 pandemic and returned last year.
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A spokeswoman for the Digital Hub said that, of the total, 24 were tenancies for one year or six months, with six months being the minimum tenancy duration available.
“Our six- and 12-month lease arrangements are popular with companies who are in a growth phase or just starting out,” she said. “This makes it easier for them to plan their future growth without the worry of longer leases.”
The hub remains a popular destination for early-stage companies despite its slated closure. In 2021, the Government announced that the Digital Hub would be dissolved and its assets transferred to the Land Development Agency (LDA) to be repurposed for social and affordable housing.
At the time, Digital Hub chief executive Fiach Mac Conghail criticised what he described as the Government’s decision to “abolish” the Digital Hub, but committed to an “orderly transfer of ownership” to the LDA.
However, in late 2021, the Digital Hub Development Agency agreed a deal with the Department of Communications, Climate Change and Environment to allow the agency to offer leases to new and existing companies until 2025, after which construction of housing is set to begin.
Regardless, the hub leased 16,000sq ft of office space last year to companies including film and data intelligence company Usheru and digital marketing agency CM Digital among others, it said in a statement.
Mr Mac Conghail said the increased demand for event and meeting space “is reflective of a return of regular in-person gatherings following the challenges that were encountered over the past number of years”.
He said: “Our reputation as a location of choice for Irish and international businesses is evident from an increase in new member companies and the return of alumni organisations over the past year and I look forward to welcoming further innovative companies to our campus in 2023.”
In a statement, the Digital Hub said it would “embark on an orderly wind-down” of its services, which will continue as normal until the closure date.
Following a public consultation, the LDA launched its master plan for the site, dubbed Pear Tree Crossing, comprising 550 new homes. The agency is expected to file planning applications this year.
