Dublin office occupiers say location is key

CBRE report says location most critical factor for Dublin firms

Article posted: 21 Nov 2011

Property consultants CBRE last week released the results of a survey they recently conducted of tenants who have signed a lease on office space in Dublin over the last 12 month period.

Of the 250 office occupiers surveyed by CBRE, just less than half of respondents (49%) employed 20 staff or less, 17% employed between 50 and 100 employees and 10% employed over 200 staff. 21% of respondents had set up a new operation in Dublin during the last 12 months while the remaining 79% were relocating from other office buildings in the capital.

Over a third of respondents relocated to offices in the Dublin suburbs, which CBRE say is presumably in an effort to cut costs, considering the significant differential in rent that exists between the suburbs and the traditional city centre. The popular Dublin 2/4 district accounted for 46% of new lettings to respondents in the last 12 month period, with occupiers no doubt attracted by the fact that more favourable rents and letting terms were on offer in the central business district than would have been the case heretofore.

45% of those respondents who relocated to a new building in the last 12 months said they relocated because their existing premises was too small to accommodate their needs. 13% of those occupiers who relocated downsized from larger offices. 16% of respondents identified the costs associated with renting and running their old premises as their main reason for relocating.

When asked what factor primarily influenced their decision in choosing a new office building, a third of respondents identified the buildings location at the most important factor, with 31% of respondents stating that the availability of public transport in the general area was the main influence in the choice of location.

The factors that were most influential in ultimately determining the type of building chosen included the size of the floor plate available, the appearance of the building, the level of fit-out and the buildings specification.

The total amount of rent payable and the rent-free package on offer were cited as the two most influential aspects of the financial package considered together with the length of lease available and the cost of service charge and rates. Interestingly, occupiers were least concerned about their repairing obligations when considering the financial package on offer in the various buildings.

76% of office location decisions were ultimately made at a local level 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.

A full copy of the report is available at: http://www.cbre.ie/portal/pls/portal/CBWEB.utils_news_public.show_image?id=9081&field=doc1&trans=n

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Posted by Jo