Office Agency | Ireland - Savills

 
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Office Agency | Ireland - Savills
Office Agency | Ireland
Office Agency | Ireland - Savills
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                                                                                                                      2018
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                                                                                                                                                                                                                                              Ireland

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                                                                                                 Dublin Offices                                                                                                                        Q1 2018

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                                                                                                       Introduction                                                                 Market Demand
                                                                                                       Since our last report the economic news-flow has remained positive.          After a very busy Q4 2017 when 136,851 sq m of purpose-built office
                                                                                                       Ireland's labour market is currently in a real sweet spot. On one hand       space was taken-up, activity reverted to 61,700 sq m in Q1 2018 –
                                                                                                       strong and sustained jobs growth has brought unemployment down               broadly in line with the long term quarterly average. This is notably
                                                                                                       to 5.9% in April, its lowest rate for a decade. On the other hand there      lower than the take-up figures quoted by some other agencies. The
                                                                                                       is still some spare capacity for additional growth – both through            main reason is our understanding that the LinkedIn lease on One
                                                                                                       increased labour force participation and through a further contraction       Wilton only became unconditional in Q2. This notwithstanding, the
                                                                                                       in the unemployment rate. Because of this, wages are only picking            momentum that currently exists is evident in Graph 1 which shows
                                                                                                       up modestly (+2.1% y/y) and the competitive gains that have been             continued growth in take-up on a four-quarter rolling basis, and April’s
                                                                                                       achieved in recent years remain in place.                                    lettings suggest that Q2 will be another strong quarter.

          Actedin in the top four office leasing transactions
                                                          in in Dublin
                                                                     in in 2016
                                                                                                       The continued strength of the labour market has fed into a marked

                                                                             * * * inby size and value
                                                                                                       improvement in the public finances. Figures released in April show that
                                                                                                                                                                                    Graph 1:
                                                                                                       the deficit was cut to just 0.3% of GDP last year and the debt ratio,        Dublin Office Take-Up – 4 Quarter MA

         Acted     the top four office leasing transactions     Dublin     2016
                                                                                                       which had reached 124.2% of GDP in early 2013, has now retreated to
                                                                                                       68%. This figure is targeted to fall further and should reach the required
                                                                                                       60% level by 2021.

                                                                                                       The improved public finances have created space to address some

                                                                             Market
                                                                                                       of Ireland’s long-standing economic constraints. In February Project
                                                                                                       Ireland 2040 was launched, comprising a spatial strategy which covers
                                                                                                       the next 22 years (The National Planning Framework) and an integrated
                                                                                                       spending plan for the coming decade (The National Development
                                                                                                       Plan). Expenditure of €116bn should bring Ireland’s public investment

                                                                                                                                                                                                                                                                Minutes Dublin
                                                                                                       spending back above the EU average under this plan. And the various
                                                                                                       infrastructure, environmental and regional development schemes
                                                                                                       contained within it will enhance the competitivness of Dublin and

                                                                                                                                                                                                                                                                  * by size and value
                                                                                                       Ireland’s regional cities as business locations.

                                                                                                                                                                                    Take-Up by Sector
                                                                                                                                                                                                                                                                Offices
                                                                                                                                                                                    22,000 sq m of Dublin office space was taken by occupiers from the

 OURSERVICES
           SERVICES
                                                                                                                                                                                    ICT sector in Q1, and the share of space accounted for by this sector
                                                                                                                                                                                    continues to hover in-or-around 40% of total take-up. The importance
                                                                                                                                                                                    of US tech multinationals to the Dublin market was again evident with
                                                                                                                                                                                    Google taking 7,900 sq m across two lettings in Sandyford. However,

OUR
                                                                                                                                                                                    while ICT remains the dominant consumer of space, there has been
                                                                                                                                                                                    a marked up-shift in the proportion of take-up accounted for by two
                                                                                                                                                                                    other sectors. Financial companies took just under 16,000 sq m in 17
                                                                                                                                                                                    separate transactions (26% of total take-up). Larger lettings included

OUR     SERVICES
                                                                                                                                                                                    Deloitte which pre-let 2,880 sq m at 3 Park Place, CNP Santander
                                                                                                                                                                                    which took 1,970 sq m in the same building, Mastercard which let 2,526
                                                                                                                                                                                    in Block E in Central Park and Depfa Bank and Apex Fund Services
                                                                                                                                                                                    which leased 1,830 and 1,394 sq m respectively in the Irish Life Centre.

                                                                                                       5 Earlsfort, Dublin 2.

 Specifically we offer advice on:
Specifically we offer advice on:
 Specifically we offer advice on:

                                                         Marketing strategy, methods                                                                      Tenant Advisory and
                                                       Marketing strategy, methods                                                                     Tenant Advisory and
             Research led                                      and market trends                                                                           Occupier Services
          Research led                                     and market trends                                                                            Occupier Services
          targeted
          Research marketing
                     led targeted                      Marketing strategy, methods                                                            Tenant Advisory and
       targeted marketing
                   marketing                               and market trends                                                                   Occupier Services

                                                                                                        Site appraisal, development options
        Market Searches                                       Project Management                     Site appraisal, development options
      Market Searches                                      Project Management                                        and strategy
                                                                                                                 and strategy
               Market Searches                               Project Management                                 Site appraisal, development
                                                                                                                    options and strategy

                                                                 Office design,                                                                                                                         Rating Advice
                                                               Office design,                                                                                              Rating Advice
             Rent Review                               specifications and management
           Rent Rent Review
                Review                                Office design,
                                                    specifications and specifications
                                                                      management                                                                                        Rating
                                                                                                                                                                             andAdvice
                                                                                                                                                                                 appeals
                                                                                                                                                                          and appeals
                                                            and management                                                                                               and appeals

   Landlordswe
 Landlords   wehave
                haveacted
                     acted forinclude:
                                 include:
Landlords we have acted forforinclude:
Office Agency | Ireland - Savills
DUBLIN OFFICE MARKET - Q1 2018
Deals and Demand

                                                                                  12
          Total take up          Total Number of Deals             Deals above                            Average sized deal
          675,569 sq ft                    51                      20,000 sq ft                           13,247 sq ft

                                 Largest deal                  Fastest Growing Sector
Largest
             ICT                                               “Service Office”                             Active Enquiries

                                                                                                            154
sector                                                         6% 2017
                                 Dublin Landings               up to 20% in 2018
                                  99,500 sq ft

               €65 psf                                                             Total Active Demand 4.09m    sq ft up
Prime                                     €29.50 psf
rents          city centre                suburbs                                   from 3.51m sq ft Pre-Brexit Vote

Stock and Supply

 Total supply 39,879,763 sq ft
                                           Location                  Existing Stock sq ft            Development on-site
  40%                         47%
suburbs                   city centre      CBD                             18,767,672                      3,800,858
                                           City Fringe                     4,042,168                        11,836
                                           Suburbs                         17,069,924                       465,073

                                                   Vacancy rate:
                                                                                                     25 Years
                10%
            city fringe                 6.4%
                                     city centre                                                     standard lease
                                                                       12.3%
             Completed                                                suburbs                        12 Years
                                      8.5%                                                           standard term certain
             171,847             Dublin vacancy

             sq ft                                                                Pipeline on site

          Grade A Vacancy
                                                Vacancy Rate of Newly
                                                Developed Offices
                                                since 2014:
                                                                                  46                    42%
                                                                                  buildings             Pre-let/Owner
          in CBD   4.57%                        6.59%                             on site,              occupied
Office Agency | Ireland - Savills
1
                     2

                         19
                                  4
                 3

                                          7
     5                        8
                                      9

         6
                                                   11
                                              10

17
Office Agency | Ireland - Savills
1    Leasing agents on Whitaker Court

                 2     easing agents on the entire building to O2 and acted for Three
                      L
                      on rent review.

                 3    Advised Union on acquisition of 4 and 5 Grand Canal Square
                 4    Sold Riverside 1

                 5    Sold 2 Grand Canal Square

                 6    Advised IPUT on acquisition of 1 Grand Canal Square

                 7    Leasing agents of Riverside 2 to Cosmo Pharmaceutical

                 8    Sold The Marker Residences

                 9    Sold Hanover Quay

                 10   Sold development site to Cairn Homes and provided design advice
                      to TIO on its development. Leasing agents for the office scheme.
                      (Practical Completion Q1 2018). Letting of 61,000 sq ft to Aptiv.

      12         11    easing and tenant representation agents for the
                      L
                      Bloodstone building
      18
                 12   Advising on development of 76 Sir John Rogerson’s Quay
                      (Practical Completion Q3 2018)
            15
13               13   Advised on original development by Ellier, leased to Facebook,
                      advised IPUT on sale and then leasing to Accenture

                 14   Sold 8 Hanover Quay and acted for Airbnb on leasing
 14
                 15    old 78 Sir John Rogerson’s Quay and adjoining site to Kennedy
                      S
                      Wilson. Advised State Street on the leasing of this building
           16
                 16    easing agents for The Reflector (Practical Completion Summer
                      L
                      2018). Letting of East Wing 40,000 sq ft to LogMeIn

                 17    cted as receiver over the historic Boland’s site for NAMA and
                      A
                      advised on its design and development

                 18   Sold 77 Sir John Rogersons Quay for Deutsch Bank to Hibernia

                 19   Acquired 30-32 Sir John Rogersons Quay for IPUT. Leasing agents
                      on new redevelopment to be known as Tropical Fruit Building
Office Agency | Ireland - Savills
GREAT TENANT REPRESENTATION
IS ABOUT SO MUCH MORE
THAN THE TRANSACTION
We provide fully integrated real estate solutions for office occupiers. Our dedicated corporate
tenant representation team provides specialist commercial property advice to corporate clients
who wish to open a new office or expand existing ones.

                 Full cycle corporate services                                 Property management
                 Executive relocation advice
                                                                               Site appraisal, development
                 Marketing strategy, methodology                               options and strategy
                 and in-sites into market trends
                                                                               Office design, specifications
                 Tenant advisory                                               and management

                 Lease negotiation                                             Rent reviews, re-gears and
                                                                               renewals
                 Cash flow and service cost
                 strategy advice                                               Rating/local tax advice and
                                                                               appeals

How we can help you                                           Our Expertise
Savills provides a full spectrum of office occupier             Our clients benefit from the experience of a successful
services. We engage at an early stage with clients to         team. We provide best in class services through our
identify the scope of their requirements, whether they        ability to understand our client’s requirements and assist
may be looking to expand their business or dispose of         them in achieving desired results efficiently and cost
current space.                                                effectively.

We have helped client’s expand their business by              Our clients range from both national to multinational
disposing of their existing interests, while simultaneously   operations and include:
sourcing a new property in efficient manner on
favourable terms.                                             A sample of the tenants we have represented include:

Our advanced network in conjunction with our colleagues
Savills-Studley in the United States provides the right
advice on both a local and international stage. We
provide US with multinationals a hassle free experience
when establishing their company in a new market.
THE TEAM

 Left to right: Michael Healy, Will Heffernan, David O'Malley, Christopher Boyce, Kellie O'Brien, Shane Duffy,
 Georgina Dillon, Roland O'Connell, Andrew Cunningham, Sophie Beattie, Sam Daunt, April Geraghty, Peter
 Owens, Conor Egan

 270 employees

                      Dublin Office                      Cork Office                        Belfast Office
                      33 Molesworth Street,              11 South Mall Street,              Lesley Studios,
                      Dublin 2.                          Centre, Cork.                      32-36 May Street,
                                                                                            Belfast BT1 4NZ, UK.
    3 offices
providing national         (01) 618 1300                      (021) 427 1371                    (0044) 28 9026 7820
    coverage
DELIVERING DUBLIN’S SKYLINE

         savills.ie/offices
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