Dublin 2 and 4 remain the most popular location for office businesses with almost half of this year’s tenants preferring the two southside locations as a site for their business.
In a survey of 250 office occupiers who signed leases in the last 12 months, CB Richard Ellis found that 46% opted for Dublin 2 or 4 and CBRE director Paddy Conlon, says “occupiers are attracted by more favourable rents and letting terms in these central business districts than would have been the case heretofore.”
More than a third of respondents relocated to offices in the Dublin suburbs and he says this is “presumably in an effort to cut costs, considering the significant differential in rent that exists between the suburbs and the city centre.”
Of the new leases signed in the last 12 months, 23% were for a term of up to three years, 19% were for a term of between three and five years while the majority of leases signed were for a term of between five and 10 years. Only 19% signed for a term of 10 years or more.
Of the respondents, 49% employ 20 staff or less, 17% employed between 50 and 100 employees and 10% employed over 200. As many as 21% had set up a new operation in Dublin during the last 12 months while the remaining 79% were relocating from other Dublin offices.
Almost half of those who relocated to a new building said they relocated because their existing premises were too small. Only 13% of those occupiers who relocated downsized from larger offices.
The costs associated with renting and running their old premises was identified by 16% of respondents as their main reason for relocating.
The total amount of rent payable and the rent-free package on offer was cited as the two most influential aspects of the financial package considered when making a location decision. The length of lease available and the cost of service charge and rates were deemed to be the next most important considerations. Interestingly, occupiers were least concerned about their repairing obligations when considering the financial package on offer in the various buildings.
Local management were the key decision makers in the case of 76% of location choices with the remaining 24% made by head offices overseas.
Exactly half of the respondent organisations who relocated or set up a new office operation in Dublin in the last 12 month period said they consulted staff in the decision-making process about relocation.
When asked what factor primarily influenced their decision in choosing a new office building, a third of respondents identified the building’s location as the most important factor and in turn the choice of location was influenced by the availability of public transport in the general area according to 31% of respondents.