Rents may reach record high on the Green

Office LettingsRental levels in Dublin's prime business districts could reach record highs soon if Avoca Capital agrees to pay over €646 per sq m (€60 per sq ft) for space at Garrett Kelleher's redeveloped property on St Stephen's Green.

The investment advisory firm is thought to be close to negotiating a deal for one floor at the landmark scheme at 75 St Stephen's Green.

If terms are agreed, it will rank as Dublin's most expensive letting and will support predictions from some in the property industry that rental levels in the capital could hit €753.5 per sq m (€70 per sq ft) by the end of the year.

Paul Hipwell, divisional director of Lisney's office division, is acting for Avoca Capital, while Deirdre Costello of Jones Lang LaSalle is acting for Kelleher.

Both were unavailable to comment on the deal.

The seven-storey redeveloped office block at 75 St Stephen's Green was recently put up for sale for €180 million, but industry sources claim Kelleher is likely to hold onto the property as a high income-generating asset.

Tenants already in the Burke-Kennedy Doyle-designed building include Dolmen Stockbrokers and the international law firm, Maples and Calder.

Meanwhile, BCM Hanby Wallace, the state's sixth largest law firm, is understood to be in the market for 9,290sq m to 10,684sq m (100,000sq ft to 115,000sq ft) of space.

The company, which acts for top investment syndicates Warren Private Clients and Quinlan Private, is based at The Colonnade building at 87-88 Harcourt Street and its decision to relocate has taken some industry experts by surprise as the law firm only leased the premises in 2002.

However, it's understood BCM Hanby Wallace is seeking larger offices to accommodate its rapidly expanding practice.

A consortium including the McCormack family, Paddy Kelly, John Flynn and Pat Ryan spent €45 million developing the listed Harcourt Street children's hospital into The Colonnade office scheme after purchasing the site in 1998 for €8 million. It was let to BCM Hanby Wallace in its entirety although the landlord had to underwrite three floors at the front.

Finally, developer Liam Carroll is letting two floors of his Chapel House property to Bank of Scotland (Ireland), ahead of the financial institution's move to Cherrywood, where its new headquarters will be located.

It's understood Carroll is accommodating the bank at a competitive rate, with industry sources putting the short-term lease at no more than €269 per sq m (€25 per sq ft).

The property developer shuns the media but he hit the headlines last summer when he emerged as the buyer of Dermot Desmond's 22 per cent stake in food group Greencore.

Chapel House is the headquarters of Danniger, one of Carroll's development firms, and is located at the corner of Jervis Street and Parnell Street.