Google has signed a 52,900sq ft lease for office space in Sandyford in a move that marks a change of direction for the company's real estate strategy, The Irish Times understands.
Until recently, Google had concentrated its office needs around Barrow Street, Dublin 4, in the so-called “silicon docks” area of Grand Canal.
Additionally, the company recently leased an additional 51,000 sq ft of office space near its Europe, Middle East and Africa (EMEA) headquarters on the corner of Grand Canal street and Clanwilliam Place. That office, the Irish Life owned Velasco building, was officially opened last Thursday.
Velasco was the seventh building in Google's Irish campus, bringing to €809 million the investment it has made in Ireland. The move into the Velasco building comes as Google focuses its attention on cloud, a growing area for the group.
The move into Sandyford marks the first office signing outside of Dublin’s city centre for Google, which now employs around 7,000 staff, including contractors, in Ireland.
Google will take up space in Kennedy Wilson's "the Chase" development alongside pre-existing tenants including Mars and outsourced B2B solutions provider Service Source.
"This lease brings the Chase to 100 per cent occupancy and sets a new rental tone for the building, with passing rents up 20 per cent since we acquired the property in May 2016," said Mary Ricks, president and chief executive of Kennedy Wilson Europe.
“We expect to see further rental growth in our office portfolio with passing rents sitting 12 per cent below the market and significant rent reviews due in the next 12 to 24 months,” she added.
Kennedy Wilson’s Dublin office portfolio comprises 15 properties with an occupancy rate of 98 per cent.
The New-York listed company last year sold its 200 Capital Dock development to JP Morgan and has let 100 and 300 Capital Dock to online recruiter Indeed.
