A new report from BNP Paribas Real Estate illustrates the extent to which Dublin’s office market demand is evolving around LUAS and Dart infrastructure.
The highest rents on the estate agent’s ‘LUAS Map’ remain centred on the Dawson Street LUAS stop, and its immediate environs, at €67.00 per sq ft for newly developed Grade A buildings. The lowest rentals are around the Tallaght red line stops (€12.50 per sq ft).
Keith O'Neill, Head of Office Agency at BNP Paribas Real Estate, said areas without railway line access tend to experience slow rental growth or take longer to lease.
“Public transport access is undoubtedly a factor in the value of office development, and will impact future development. Investors and developers will obviously pursue the goal of achieving higher density in desirable accessible locations,” he said.
“Employers need access to talent, and their aim to secure and retain employees is facilitated where they can offer easily-accessed high quality offices, with good facilities.”
In Association with
The role of public transport in city regeneration is also evident in the BNPPRE report.
The company says that Adelaide Road, Harcourt Road and Charlemont areas have seen significant regeneration, with new office development including Charlemont Square, Charlemont Exchange, 2 Grand Parade, the Cadenza Building, and Earlsfort Terrace.
Transport links are helping create a new City Quarter with major international occupiers such as Amazon, Intercom, and WeWork, the agency says.
“The ‘LUAS effect’ and greater accessibility, thanks to the red line, has led to office development and regeneration in Smithfield, and increased demand for Grade A office buildings there,” said O’Neill. “The state is a significant prospective tenant in the area, where rents are increasing. Areas along the red line, in general, are becoming more vibrant with cafés, restaurants, bars and shops opening.”
According to the agent's maps, South Docks is still outperforming North Docks in terms of rental levels, according to O’Neill.
“The Pearse Street DART station area commands rentals at €59.00 per sqft, while at the other side of the river George’s Dock offices average €52.50 per sq ft," O'Neill explained..
“The docks area is dominated by the TMT sector and new Grade A developments such as the Tropical Fruit House on Sir John Rogerson’s Quay and 10 Hanover Quay continue to attract international companies such as Tik Tok and Fiserv.”
LUAS enhancement of the living and working environment on the North Docks is, however, steadily growing a vibrant community, O’Neill adds.
“The north docks popularity is reflected in increasing office rents. Large scale office development such as The EXO, the new Salesforce HQ, and Dublin Landings Development have transformed the docklands landscape. The arrival of tenants such as Microsoft, An Post and Salesforce is creating a clustering effect for smaller tenants.”
Ballsbridge, traditionally an Embassy belt, is now emerging as a tech hub and competitively challenging traditional Dublin 2 office locations. Rental levels are now at €60 per sqft for newly developed Grade A office buildings, the BNPPRE mapping shows. The Dart line at Lansdowne is a big element of the attraction.
Sandyford is Dublin’s best performing suburban office location, the map reveals. The LUAS Green line from St Stephen’s Green significantly enhanced Sandyford as a viable, cost-effective alternative to the city centre, says the agent. This is evidenced by large corporate occupiers such as Facebook, Google, Microsoft, Mastercard, BNP Paribas and Vodafone.
The BNPPRE LUAS and Dart office rentals map tracks office rental levels on the main public transport lines in Dublin.
It charts average rents over the past two years for properties within a 10-minute walk of each station, based on a representative sample of Grade A office lettings.
Downloads are available online at https://www.realestate.bnpparibas.ie/, along with further market analysis and insights.
