Stephen's Green office letting underlines strength of market

THE take-up of office space in Dublin continues to run at an exceptionally strong level. Most of the demand is coming from overseas companies. The volume of space let in the first six months of this year is expected to create a new record, pushing the vacancy rate down to about 3.5 per cent.

Giant US company Lucent Technologies, formerly part of the A T & T Group, is the latest international company to relocate part of its operation to Ireland. The company, which specialises in communication and cabling products, has taken a long lease of the former ABN Amro Bank offices on St Stephen's Green, Dublin 2.

Another US company, Compaq Computer Corporation, is understood to be in negotiations to rent over 100,000 square feet at the planned Belfield Business Park, Clonskeagh, Dublin 4.

The decision by Lucent Technologies to base its international marketing operation, as well as its Irish office, in St Stephen's Green comes two months after the Royal College of Surgeons in Ireland purchased the building for around Pounds 5 million.

The tenant will be paying close to the quoted rent of Pounds 18 per square foot, one of the highest rents in the city for a building without raised floors. Car-parking spaces in the basement will cost an additional Pounds 2,000 each. Although the building has 22,500 square feet on five floors, the top floor of 3,000 square feet is sub-let to the Danish Embassy at a rent of Pounds 41,000 per annum.

Nicholas Corson of Finnegan Menton, who handled the letting, said the college was particularly happy to have secured a quality tenant within two months of completing the purchase.

Sherry FitzGerald advised Lucent Technologies, which is valued at October. It has a manufacturing plant in Bray.

Finnegan Menton also advised the European Commission Food & Veterinary Office which is renting 20,000 square feet of space at Trident House, Blackrock, Co Dublin. The rent will be Pounds 13 per square foot, with an additional Pounds 750 for each of the 21 car-parking spaces. The building was developed by Superquinn and initially leased to AIB. The new tenants are taking the block on a 20-year lease with a break option after five years.

About 70 EU veterinary inspectors will move from Brussels to Blackrock, beginning next September. The inspectors eventually will be based in a new office building which is to be built at Grange Agricultural Research Station, near Bective, Co Meath. Sherry FitzGerald handled the assignment of the lease for AIB.

Meanwhile, a British property company has let two floors in Adelaide House, a modern office building it owns overlooking Dun Laoghaire Harbour. The German translations company Berlitz International will be paying a rent of Pounds 11.50 for 8,800 square feet, which was previously occupied by US computer software company Retix.

Berlitz is taking a 10-year lease with a break option after five years. Gunne advised the landlord.

In the city centre, the Food Safety Authority of Ireland (FSAI) has leased 15,000 square feet of office space in Abbey Court at the Irish Life Centre in Lower Abbey Street. The State agency is paying a rent of between Pounds 12.25 and Pounds 13 per square foot under a 20-year lease with a break option in the 10th year. Gunne acted for the FSAI and Hamilton Osborne King represented Irish Life.