RESEARCH
Q3 KEY TRENDS
Q3 OFFICE OCCUPIER MARKET AT A GLANCE
NO 1 DEAL CITY CENTRE
JOAN HENRY Head of Research, BNP Paribas Real Estate, Ireland
BARCLAYS BANK ONE MOLESWORTH STREET NO 1 DEAL SUBURBS
OPW LIBERTY BUILDING SERVICED OFFICE PROVIDERS
2 OF THE TOP 5 DEALS
HIGHEST RENT ACHIEVED
€775 PER SQ M 81A CAMPSHIRES, SJQ, DUBLIN 2 THE TOP 5 DEALS IN DUBLIN 1 & 2
CONTRIBUTED TO 25% OF OVERALL TAKE UP
CONTENTS 3
Q3 OFFICE OCCUPIER MARKET AT A GLANCE
4
TOP 10 DEALS Q3
5
6 7
8 10 11 12
TOP 5 DEALS - DUBLIN 2 - DUBLIN 1 & IFSC - DUBLIN 4 TOP 10 DEALS SUBURBS TOP 5 DEALS - SOUTH SUBURBS - NORTH SUBURBS KEY INSIGHTS PLANNING OVERVIEW Q3 BNP PARIBAS REAL ESTATE NEWSFLASH CONTACTS
Take-up year to date now exceeds the ten-year annual average, while competition for new space in Dublin 2 tests the upside for prime Dublin rents.
T
he strength of demand for space in Dublin’s office market is evidenced by the strong level of take-up year to date, now totalling just over 200,000 sq m. This figure is above the long term average annual take-up level of 190,000 sq m, reflecting the fast moving pace of the key factors which underpin the city’s office market. Economic growth is estimated at 5.8% year on year, with the Information and Technology sector making the strongest contribution (+21%). The Professional Services sector has expanded by 14.2% over the same period and building and construction by 12.7%.
There is a clear co-relation between the pattern of economic expansion and activity in Dublin’s office market. TMT companies represented 24% of the number of deals closed in Q3, while Professional Services companies made up 9%. The amount of office stock in the Dublin office market has expanded by close to 10% in this economic cycle as the city landscape has been modernised. Demand for prime space is becoming more competitive as new supply completes, particularly in prime locations as evidenced by the rents achieved with the acquisition of space by Goshawk Aviation and Barclays Bank at One Molesworth St. Activity in the suburbs represented almost 20% of take-up in Q3 with the largest transaction being the letting of almost 3,000 sq m in the Liberty Building in Blanchardstown. The second largest transaction was done by a serviced office provider who took space in Sandyford. The trend in activity continues to be led by the City Centre-33% of office space taken up in Q3 was from five deals combined, three of which were in Dublin 2 i.e Barclays Bank, Core Media and Iconic Offices. In summary, total take-up in 2017 is set to be the strongest achieved in the current market cycle.
33%
OF OFFICE SPACE TAKEN UP IN Q3 FROM TOP
5 DEALS
3
>> DUBLIN CITY CENTRE
TOP 5 DEALS DUBLIN 2
One Molesworth Street, Dublin 2: Number one Q3 2017 deal in Dublin
BUILDING
1 2 3 4 5
First, Second & Part Third Floor, One Molesworth Street Ardilaun Court, St. Stephens Green Third Floor, One Windmill Lane
First Floor, Styne House, Upper Hatch Street Fourth Floor, One Molesworth Street
LOCATION
TENANT SIZE SQ FT SIZE SQ M
Dublin 2
Barclays Bank
37,000
3,437
Dublin 2
Iconic Offices
30,752
2,857
Dublin 2
Core Media
23,767
2,208
Dublin 2
Car Gurus
13,326
1,238
Dublin 2
Goshawk Aviation
12,837
1,193
TOP 5 DEALS DUBLIN 1 & IFSC BUILDING
1 2 3
TOP 10 DEALS Q3 BUILDING 1 2 3 4 5 6 7 8 9
First, Second & Part Third Floor , One Molesworth Street Ardilaun Court, St. Stephens Green
Fourth, Fifth & Sixth Floors, Liberty Building, Blanchardstown Third Floor, One Windmill Lane 51 Bracken Road, Sandyford
Second Floor, 2 Dockland Central, IFSC Second Floor, Block P4B, Eastpoint
Part Ground & Second Floors, Block P1, Eastpoint Business Park The Metropolitan Building, James Joyce Street
10 First Floor, Styne House, Upper Hatch Street
4
4
LOCATION
TENANT SIZE SQ FT SIZE SQ M
Dublin 2
Barclays Bank
37,000
3,437
Dublin 2
Iconic Offices
30,752
2,857
Dublin 15
OPW Department of Education
30,411
2,825
Dublin 2
Core Media
23,767
2,208
Dublin 18
Connect Serviced Offices
16,615
1,544
Dublin 1
Hubspot
16,240
1,509
Dublin 3
MMS Multi Euro Services
14,703
1,366
Dublin 3
Ted Castles Group
14,132
1,313
Dublin 1
OPW
14,000
1,301
Dublin 2
Car Gurus
13,326
1,238
5
Second Floor, 2 Dockland Central, IFSC
Fourth Floor, The Metropolitan Building, James Joyce Street Part Ground Floor, The Exchange, IFSC Level 4, Custom House Plaza 5
Ground, First & Second Floors, 4 Exchange Place, IFSC
LOCATION
TENANT SIZE SQ FT SIZE SQ M
Dublin 1
Hubspot
16,240
1,509
Dublin 1
OPW
14,000
1,301
Dublin 1
Ronan Daly Jermyn Solicitors
6,781
630
Dublin 1
Flexigroup
4,385
407
Dublin 1
Dexia
2,833
263
TOP 5 DEALS DUBLIN 4 BUILDING
1 2 3 4 5
Part Ground Floor, Beaver House, Clonskeagh
Part Second Floor, Embassy House, Ballsbridge
Part Fifth Floor, Connaught House, Burlington Road
Fifth Floor, Building 3, Number One Ballsbridge, Shelbourne Road 7 Herbert Place
LOCATION
TENANT SIZE SQ FT SIZE SQ M
Dublin 4
Pinergy
6,480
602
Dublin 4
Stellwagon Group
5,657
526
Dublin 4
Virtus
5,316
494
Dublin 4
CMIG
2,988
278
Dublin 4
Language Campus
2,632
245
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>> DUBLIN SUBURBS
TOP 10 DEALS SUBURBS BUILDING
1
Fourth, Fifth & Sixth Floors, Liberty Building, Blanchardstown
TOP 5 DEALS SOUTH SUBURBS
LOCATION
TENANT
SIZE SQ FT
SIZE SQ M
Dublin 15
OPW - Department of Education
30,411
2,825
1
51 Bracken Road, Sandyford
Dublin 18
Connect Serviced Offices
16,615
1,544
BUILDING
LOCATION
TENANT SIZE SQ FT SIZE SQ M
2
51 Bracken Road, Sandyford
Dublin 18
16,615
1,544
2
Shrewsbury House, Cabinteely
Dublin 18
Down Syndrome Centre
9,688
900
3
Shrewsbury House, Cabinteely
Connect Serviced Offices
Dublin 18
Down Syndrome Centre
9,688
900
3
First Floor, Carnegie House, Dun Laoghaire
Co. Dublin
GOAL
5,561
517
Dublin 15
Digital
7,187
668
4
Unit 1, 2050 Orchard Avenue, Citywest Business Campus
Dublin 24
EU Networks
5,274
490
Co. Dublin
GOAL
5,561
517
5
Second Floor, Maple House, Stillorgan
Co. Dublin
Your Smile Direct
3,714
345
Dublin 24
EU Networks
5,274
490
Co. Dublin
Your Smile Direct
3,714
345
Dublin 18
Comtrade
2,745
255
Co. Dublin
Lets Get Checked
1,281
119
Dublin 18
TK Maxx
1,174
109
4 5 6 7 8 9 10
Part First Floor, Stratus House, Blanchardstown First Floor, Carnegie House, Dun Laoghaire Unit 1, 2050 Orchard Avenue, Citywest Business Campus
Second Floor, Maple House, Stillorgan
Block A/B, Bracken Court, Bracken Road, Sandyford Suite 3, Adelphi House , Upper Georges St , Dun Laoghaire Suite 15, The Hyde Building, Carrickmines
Liberty Building, Blanchardstown. Number one Q3 2017 suburban deal
TOP 2 DEALS NORTH SUBURBS BUILDING
1 2
Fourth, Fifth & Sixth Floors, Liberty Building, Blanchardstown Part First Floor, Stratus House, Blanchardstown
LOCATION
TENANT
SIZE SQ FT SIZE SQ M
Dublin 15
OPW Department of Education
30,411
2,825
Dublin 15
Digital
7,187
668
With 130,000 SQ M of office space reserved in Q3, take up for 2017 is set to exceed that of last year and could be the highest ever achieved.
KEITH O'NEILL Director Office Agency BNP Paribas Real Estate
6
7
>> KEY INSIGHTS
N
MALAHIDE
SWORDS
E
W S
DUBLIN AIRPORT
PORTMARNOCK
39,561 SQ M
TOTAL TAKE UP COOLOCK
SANTRY FINGLAS
SUTTON
BEAUMONT
KILBARRACK
HOWTH
DRUMCONDRA CASTLEKNOCK
D3
C L O N TAR F
D1 CITY CENTRE
CHAPELIZOD
D2
B A L LY F E R M O T
SUBURBS
31,483 SQ M
7,771 SQ M
(DUBLIN 1, 2, 3 & 4)
D4 CRUMLIN
CITY CENTRE
RANELAGH
WA L K I N S T O W N TERENURE CLONSKEAGH
DUNDRUM
BLACKROCK
TAL L A G H T
80%
DUN LAOGHAIRE
STILLORGAN
R AT H FA R N H A M SANDYFORD
GLENAGEARY
20%
L E O PAR D S T OW N CARRICKMINES CHERRYWOOD
7%
HEALTH
The emergence and continued expansion of the serviced office market is one to watch in 2018. Huckletree and Wework have both opened their first centres here and further new entrants are imminent. This will invariably have an effect on demand for smaller office suites in Dublin.
SHANE DUFFY Director Office Agency BNP Paribas Real Estate
8
6% STATE
% OF OVERALL TAKE UP BY SECTORS*
17%
PROFESSIONAL SERVICES
24% TMT
24%
OTHER
JOAN HENRY Head of Research, BNP Paribas Real Estate Ireland
CITY CENTRE (DUBLIN 1, 2, 3 & 4)
SUBURBS
€775 PER SQ M
€279 PER SQ M
NUMBER OF DEALS
48
10
AVERAGE DEAL SIZE
656 SQ M
771 SQ M
84,300 SQ M
41,865 SQ M
HIGHEST RENTS
SUITE 15, THE HYDE BUILDING, CARRICKMINES, DUBLIN 18
81A CAMPSHIRES, SIR JOHN ROGERSON'S QUAY, DUBLIN 2
OFFICE STOCK RESERVED
BREAKDOWN OF DEALS PER SIZE CATEGORY:
FINANCIAL
22%
Despite increased supply as new completions come on stream in the City Centre, demand from high profile occupiers is keeping close pace, resulting in an upward move in prime rents for some of Dublin’s most sought after locations. Supported by solid economic growth and an active labour market, current market dynamics are set to test the market further over the coming quarters.
CITY CENTRE SUBURBS
UNDER 1,000 SQ M
1,000 / 2,000 SQ M
2,000 / 3,000 SQ M
3,000 SQ M AND ABOVE
37
8
2
1
8
1
1
0
*Measured by number of deals
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>> PLANNING OVERVIEW Q3
>> BNP PARIBAS REAL ESTATE NEWSFLASH SOME OF OUR CURRENT PROJECTS
PLANNING LODGED BUILDING
0.91 Site at North Wall Quay & Mayor Street College House, 2-3 Townsend Street
(Tedcastles Site) 91-94 North Wall Quay 8 Newmarket & 18 Mill Street
Newmarket Industrial Estate, Newmarket 10-12 Hanover Quay
The Park Carrickmines
Kildress House, 1 & 2 Pembroke Row, Lwr Baggot Street Building 12, Cherrywood
Coby Autos Premises, Red Cow Complex, Naas Road 17-22 Parkgate Street
LOCATION
LANDLORD SIZE SQ FT
SIZE SQ M
Dublin 1
Deloitte
386,241
35,883
Dublin 2
Balark Trading GP Ltd
201,338
18,705
Dublin 1
Targeted Investment Opportunities Plc
201,058
18,679
Dublin 8
Newmarket Partnership PM Ltd.
98,338
9,136
Dublin 8
Newmarket Partnership PM Ltd.
79,071
7,346
Dublin 2
Kennedy Wilson
78,490
2,825
Dublin 18
Muinellim Ltd
78,371
7,281
Dublin 2
Kildress Property Company Ltd
32,184
2,990
Co. Dublin
DLR Properties
30,687
2,851
Dublin 24
Prospectside Ltd
18,212
1,692
Dublin 8
Joburn Holdings Ltd
12,443
1,156
LANDLORD SIZE SQ FT
SIZE SQ M
#1
#2
#3
BNP Paribas Real Estate instructed by Friends First to lease 2,000 sq m of refurbished office accommodation.
Google have agreed to lease 4,700 sq m in the high profile Chase Building taking the 16,000 sq m, 7 storey office building to full occupancy.
Practical completion less than 3 months away, 10,000 sq m of prime Grade A office accommodation available for tenant fit out now.
#4
#5
#6
5 storey over basement period building on Dame Street opposite the former Central Bank, sold to private investor for €1.6 million.
3rd and 4th floors sub leased on behalf of Maples FS to Green Reit (455 sq m) and Standard Chartered (589 sq m).
Construction of Two and Three Dublin Airport Central commenced in September 2017 and will be completed in Q4 2018. The office buildings will extend to a total floor area of 19,000 sq m.
23 Shelbourne Road, Ballsbridge, Dublin 4
The Chase, Arkle Road, Sandyford, Dublin 18
Three Park Place, Hatch Street, Dublin 2
PLANNING GRANTED BUILDING
25-29 Earslfort Terrace
Alderborough House, Portland Row 2 Grand Canal Parade
Hainault House, 69-71 St. Stephens Green 74-75 Baggot Street Lower 69D, Donore Avenue
IPC House, 35-39 Shelbourne Rd
6 & 13 Pembroke Row, Lower Baggot Street 10
LOCATION Dublin 2
IPUT & McGarrell Reilly Mgt
252,531
23,461
Dublin 1
Reliance Investment Ltd
158,444
14,720
Dublin 6
Hines Ireland
114,751
10,661
Dublin 2
Irish Life Assurance Plc
88,899
8,259
Dublin 2
Irish Life Assurance Plc
75,605
7,024
Dublin 8
Como Lake Limited
74,938
6,962
Dublin 4
October Management Ltd
65,153
6,053
Dublin 2
MKN Properties
45,628
4,239
*Tables and data are for guidance only and are based on information available at the end of Q3 2017.
37 Dame Street, Dublin 2
32 Molesworth Street, Dublin 2
Dublin Airport Central, Dublin Airport, Co. Dublin
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>> CONTACTS
JOAN HENRY
20 Merrion Road, Ballsbridge Dublin 4, Ireland +353 1 661 1233 realestate.bnpparibas.ie
HEAD OF RESEARCH T +353 1 661 1233 joan.henry@bnpparibas.com
PSRA No: 002702
At BNP Paribas Real Estate our people work with you to build targeted and integrated real estate solutions for your every need: Property Development, Transaction, Consulting, Valuation, Property Management and Investment Management. With our international scope, expertise and on-the-ground presence, you will find the perfect partner that can ensure the success of your real estate projects.
KEITH O’NEILL
SHANE DUFFY
T +353 1 661 1233 M +353 86 857 9696 keith.oneill@bnpparibas.com
T +353 1 661 1233 M +353 87 782 6357 shane.duffy@bnpparibas.com
DIRECTOR | OFFICE AGENCY
DIRECTOR | OFFICE AGENCY
DISCLAIMER: BNP Paribas Real Estate is a wholly owned subsidiary of the BNP Paribas Group, the leading global Financial Institution. All rights reserved. The report was prepared by BNP Paribas Real Estate Ireland. All data provided in the publication have been carefully verified, however the authors of the report shall not be held liable for any damage or loss which may arise from the use of the data published. Reproducing, modifying or using any of the contents hereof without the permission of the authors of the publication is prohibited under the provisions of the applicable law. It is permitted to quote the contents of the publication only when clearly stating the source.
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