Office space at €450m Northern Cross scheme to rent at €270 per sq m

RentalMarket:The PJ Walls Group has just launched the office element of its €450 million Northern Cross scheme.

Interest in the development is expected to be strong following the hedge fund company JP Morgan Tranaut's decision to take 2,600sq m (27,986sq ft) at the new designated town centre.

Suburban locations are proving increasingly attractive to blue-chip companies as high vacancy rates have kept rents at roughly half those in the city centre.

In recent months the insurance giant Royal & SunAlliance and the Bank of Scotland both secured substantial savings to their annual rent bills when they opted to relocate to developments in Dundrum and Cherrywood.

However, while incentives, such as generous rent-free periods and break options in the lease, are still a feature of the suburban office market, the deciding factors for many companies considering a move out of the city centre are transport and the quality of facilities on offer.

The Northern Cross scheme is one of the largest mixed-use developments in north Dublin.

In June 2005 the Hilton group opened its first hotel in Dublin at the site, which is strategically located close to the airport and is accessible via the M50 and M1.

Meadows & Byrne, the upmarket furniture chain, operates a store at the retail element of the scheme while the coffee company, Insomnia, and Fresh, the supermarket group owned by developer Simon Kelly, both opened outlets there in recent months. There is also a Giraffe Childcare and Early Learning Centre.

According to Paddy Conlon of CB Richard Ellis, the sole letting agent for the Northern Cross office scheme, "the quality of this development and infrastructural projects, such as the Port Tunnel and the planned Metro line, have resulted in a notable increase in office requirements for the north suburbs."

Although the rental rates for Northern Cross are at the upper end of the suburban market at €270 per sq m (€25 per sq ft), Conlon argues this is a function of the scheme's "pivotal" location and the "quality" of the buildings.

Almost 50 per cent of the scheme is pre-let with Experian, a multinational credit reference company, committing to 1,942sq m (20,903sq ft) in Newenham House, where JP Morgan Tranuat will be based. Agent Jones Lang LaSalle acted for both tenants.

The ground and fourth floor of Newenham House are still available while Newenham Court is fully vacant with floors ranging in size from 540sq m (5,813sq ft) to 1,010sq m (10,872sq ft).

Both buildings are located around a landscaped courtyard and feature polished granite and glazed external façades.

Internally there are large reception areas with Italian furniture and modern art pieces, while the third generation accommodation is finished to a high specification.