With the volume of new office space in Dublin fast running out and rents continuing to harden, a number of high profile companies are involved in negotiations to rent accommodation.
Computer company Visio is to take 40,000 sq ft at Grand Canal Plaza, at Grand Canal Street, Dublin 4, and Ocean, a joint venture telecom company, is also understood to favour that location for its new headquarters. With few prime office developments under way in more traditional office locations, agents expect that the acute shortage of space could force rents up to £28 per sq ft next year for the best schemes in the city.
Even at that level, there will be relatively little accommodation available because there are so few sites and most developers are still opting to pre-let blocks before building them. Rents for space in secondary locations are likely to remain somewhat lower. Scottish Amicable has also targeted a Dublin 4 office block at The Sweepstakes as its new Irish headquarters but contrary to earlier reports has not yet agreed a rent level if it eventually goes ahead with the letting.
Visio is likely to be paying about £22 per sq ft for the seven-storey block, one of three under construction at Grand Canal Plaza. The speculative scheme by Rohan Holdings will have a total of 140,000 sq ft. Visio's 25-year lease is understood to provide for a break clause, a condition now insisted on by most international companies. The block is due to be completed in April next.
Tony O'Loughlin of agents Jones Lang Wootton is handling lettings at Grand Canal Plaza.
Now that it is to relocate, Visio is to sell the lease of its existing space at Fitzwilton House fronting to the Grand Canal. Neill Love of Druker Fanning expects to secure a premium of about £500,000 for the 15,000 sq ft space, which is rented at £15 per sq ft. The space is to be offered in two packages, one of 10,000 sq ft and another of 5,000 sq ft.
Visio opened in Ireland four years ago and has a staff of 140. It specialises in diagramming and technical drawing software and had 80 per cent growth in its European business last year.
Most Dublin office developments over the next few years will be located either in the south Dublin suburbs around Sandyford or within close proximity to the M50. The Dublin docklands has also been earmarked for a substantial number of office blocks.
