4,500 new desk spaces are expected to be available in Dublin within the next nine months, equivalent to 230,000 sq ft in commercial property space, according to a new report published today by serviced office brokerage, Click Offices.
The report highlights the rapidly increasing demand for commercial property in the capital city, fuelled by Ireland’s economic recovery and increased foreign investment.
The Dublin serviced office market has grown by 43 percent in the last two years, accounting for a total of 12,000 desk spaces, or 615,000 sq ft. It is expected to grow by a further 37 percent within the next nine months.
The serviced office market rents fully equipped office spaces to businesses on flexible contracts, with internet, phone, electricity and other services typically included in the monthly fee. As these contracts are less restrictive compared to conventional leases, and generally include overheads, they are popular among start-ups and new multinational companies scaling in Ireland.
Dublin 2 accounts for more than half of all serviced office space in the capital. There are 6,500 desk spaces in the city centre postcode, equivalent to 340,000sq ft; a further 3,700 desk spaces are expected within the next nine months. Current Dublin 2 occupancy rates are between 85-100 percent, depending on the serviced office centre.
Approximately 50 percent of serviced office tenants operate in the tech or financial services sectors and half are international companies. Tenants pay an average of €500 a month per desk.
Shane Duffy, Managing Director of Click Offices, said: “Serviced offices are increasingly popular, particularly with Irish start-ups and incoming FDI companies.
“When these companies set up in Ireland for the first time, they’re not always sure of their staffing levels, the best location for their office, or which service providers to choose. The serviced office is less restrictive than a conventional lease, and allows them to start operating quickly and without hassle. Facebook, Twitter, Dropbox and many other large international companies, now with EMEA HQs in Dublin, began operations in Ireland in this way.
“We predict the serviced office market will grow by 37 percent in the next nine months, and by 54 percent in Dublin 2 alone. Ireland’s economic recovery makes the capital an increasingly attractive location for business.
“Dublin is a mature market: it has reliable infrastructure, a business-friendly corporate tax, a highly skilled workforce, access to the EU and of course, an availability of well-fitted commercial property. Foreign investment in the city is consistently strong, and is likely to continue into the future.”