There is more great news for the office sector here in Ireland this week as Chinese based social media giant Tik-Tok has committed to renting the entire 210,000sq ft Sorting Office in Dublin’s Docklands for 15 years.
The move will see the company have over 2000 new staff members move into the Mapletree Investments owned building just as confidence had been slightly rattled recently due to Google’s decision not to proceed with a deal for the property in September of last year. This, combined with many workers moving out of the city to work from home, led to a sense of uncertainty regarding the future of the office space in the city. Still, with plans in the long term to increase staff numbers right up to 5000, the move has led to an increased sense of investor security.
While still not formally finalised, it is understood that the rates agreed for the office scheme are between €55 and €60 per sq ft. This represents excellent news for the office market when many have predicted the end of the traditional office model.
While foreign direct investment – particularly from the tech sector – has been the driver for the office sector in Dublin, and it is positive to see TikTok choosing to expand its operations here, it is not alone in its ambitions with other big movers like Microsoft, Rabobank and Amazon all acquiring city centre properties. An Post is even moving from the GPO to the Exo Building in the city’s north docklands.
All in all, it looks very positive for the second half of the year in the office sector. There may be a short window of opportunity remaining for savvy investors before a full recovery is on the cards.
As always, you should seek financial advice before making any investment decisions. If there is anything that we here at KPM Group can help with, please do not hesitate to get in touch with us today, and a member of staff will be happy to help.