THE volume of unoccupied office space in Dublin continues to decline with the agreement by Citibank to take over 45,000 square feet of accommodation vacated about two years ago by State agency FAS at Fleming House in Upper Baggot Street, Dublin 4. It is the largest single letting this year.
FAS is sub-letting the space to Citibank on a temporary basis until the US bank finds a new headquarters with at least 100,000 square feet and an option to take a further 100,000 square feet.
Citibank is to spend around £2 million refurbishing the 25-year-old Baggot Street building, which is let at £8.50 per square foot. There are 100 car-parking spaces available at a rent of £600 each. Although there is a further 16 years to run on the lease, Citibank has the right to opt out after 2 1/2, 3 1/2 or 5 years. FAS will continue to occupy 45,000 square feet in the same building, which is owned by Treasury Holdings.
Fleming House will allow Citibank to proceed with its plan to set up a new processing and customer services centre in Dublin. It already has 140 staff based at the former Bord na Mona building in Baggot Street and will be employing a further 400 at Fleming House.
In the longer term, Citibank plans to hire up to 1,000 people in a "back office" operation to support the bank's global operations.
Citibank may well end up buying a site and developing its own headquarters because there are no buildings available with 100,000 square feet of space and an adjoining site for a further 100,000 square feet. Developers would be reluctant to fund such a large scheme because of the need to give tenants break clauses between 10 and 15 years.
Willy Dowling of Gunne handled the assignment of the lease and Roland O'Connell of Hamilton Osborne King acted for Citibank.
Fleming House had the largest single volume of space overhanging the market. Another large block with 39,000 square feet formerly occupied by the Dublin planning authorities at the Irish Life Centre in Lower Abbey Street is to be taken over by the Valuation Office.
The Office of Public Works is still looking for a further 100,000 square feet for the Land Registry when it moves out of three different centres in the city. More than 20 parties have put forward proposals to accommodate about 400 staff. Other personnel are to move to Waterford under the latest round of decentralisation.
