An office block with medium-term development potential adjoining LinkedIn’s planned new headquarters just off Baggot Street in Dublin 2 is fresh to the market this week through agent CBRE at €5.25 million.
The building at 13 Pembroke Row is for sale on the instructions of receiver Stephen Tennant of Grant Thornton. Should it sell for its guide price, the purchaser will secure a net initial yield of 6.2 per cent.
13 Pembroke Row is a modern office block with 843sq m (9,074sq ft) of space and 10 parking spaces. However, the agent suggests there is potential, subject to planning permission, to add another floor. In 2008, planning permission was granted for the demolition of the block and its replacement with a four-storey over-basement office building of 1,745sq m (18,783sq ft) including 11 parking spaces.
The property is let to Bord Fáilte at €340,000 per annum under a 35-year full repairing and insuring lease which expires in March 2017. Bord Fáilte has sub-let to Rothco Ltd, whose lease also expires in 2017.
"This presents an excellent opportunity to obtain planning permission on the building while generating secure income until March 2017," says Emma Courtney of CBRE.
Dublin 2/4’s prime office district is seeing an uplift in rents as the Grade A vacancy rate has fallen to 1.8 per cent while the area’s overall vacancy rate stands at 7 per cent.
As a result, there are an increasing number of refurbishment projects. Schemes under construction include the Miesian Plaza, the Haddington Centre, the LinkedIn HQ and former Fás building. A good example of indicative rents is Bank of Ireland recently agreeing to pay a rent of €47.50 per sq ft for the former Fás office on Baggot Street which is being redeveloped.
