Facebook for one of two Dublin office sites

THE SEARCH by Facebook, the social networking site, for a new Dublin base has been narrowed down to two office buildings in the south Dublin docklands – Hanover Reach overlooking Grand Canal Dock and Whitaker Court, also with water frontage at Sir John Rogerson’s Quay.

A final decision on a preferred site is expected to be announced in the coming week.

Although the American company is only looking for a relatively small premises on a short lease at this stage, the intense competition between a large number of developers to sign them up is probably unprecedented in the Dublin office market.

With the take-up of space on the decline throughout the city because of the downturn in business and the banking crises, developers with vacant blocks on their hands are anxious to do business with Facebook because of its international profile and the prospects that it could eventually expand into an entire building once it has settled in and grown its European business.

Developers are only too aware how Google took a single building at Barrow Street in Dublin 4 in 2004 – renting some 5,574 sq m (60,000 sq ft) initially – before later expanding in 2005 into a second block taking up some 9,290sq m (100,000sq ft) in total. The company now employs about 1,500 people on site.

In an attempt to attract Facebook, one leading Dublin developer even offered rent-free office space for the first five years in the expectation that it would eventually have a large European headquarters in Dublin.

The company has confirmed that Dublin is one of two centres being considered for such a headquarters. Although headline rents for new buildings in the Dublin docklands are in the region of €654 to €700 per sq m (€60 to €65 per sq ft), the general expectation is that Facebook will end up paying around €376 per sq m (€35 per sq ft) because of the immense competition between landlords.

DTZ Sherry FitzGerald is advising Facebook on its choice of space which will initially involve only 464sq m (5,000sq ft). Ronan Corbett of DTZ said yesterday that he was precluded from making any comment on the ongoing search by Facebook for suitable office accommodation.

The agency is also looking for new office space for two other overseas companies: Genre, an American reinsurance operation; and insurance giant Lloyds of London.

The offices in Hanover Reach extend to 5,696sq m (61,311sq ft) and overlook many of the new highlights of the south docklands area. The office development and the adjoining apartments were built by Ellier Developments, a company headed by Francis Rhatigan and Chris Jones.

Whitaker Court, a five-storey building with a floor area of 4,358sq m (46,909sq ft), is owned by a consortium headed by John Flynn.

The high level of interest in Facebook is hardly surprising given that the fast expanding website was valued late last year at $15 billion (€11.6 billion). It is highly profitable, allowing the company to focus on growing its worldwide user base this year to 125 million members.

Should it ultimately decide to locate its European headquarters in Dublin, it would be seen as a major coup by the IDA. Apart from Google, the other major internet company based in Dublin is the online auction site ebay which has a staff of 1,200 in Blanchardstown.