A new report from Savills Ireland has found that demand for short term serviced office space in Dublin has risen sharply since the Brexit vote.
The report says that serviced office providers are seeking to fulfil a requirement for flexible space that is being fuelled by Brexit. While some larger Brexit-related office deals have been done, most London-based legal and financial services companies who are seeking to maintain passporting rights into the EU post Brexit are waiting to see what the final separation agreement looks like before committing to big office moves. For now, they are more inclined to establish a smaller base and use this as a platform for expansion at a later date if required.
It is estimated that 5,400 sq m of business space was taken-up in the first nine months of 2017 by serviced office providers who carve it up and sublet it on shorter leases and flexible terms. This represents a near doubling of take-up by serviced office providers in the last 12 months and a 300% increase compared with 2015.
Key serviced office provider lettings in 2017 included:
WeWork – 55,000 sq ft (5,109 sq m) – Iveagh Court
WeWork – 50,000 sq ft (4,645 sq m) – 1 Grand Canal Quay
Iconic – 31,000 sq ft (2,880 sq m) –The Greenway, St Stephen’s Green
Huckletree – 30,000 sq ft (2,787 sq m) – The Academy, Pearse Street
Pembroke Hall – 7,235 sq ft (672.2 sq m) – 26/27 Upper Mount Street
Speaking this week, Divisional Director at Savills Ireland, Michael Healy said, "Given the uncertainty that still exists around Brexit we would expect the effected corporates to take a wait-and-see approach for now. However as greater clarity emerges the likelihood is that some of the occupiers who are currently in serviced office space will migrate into more permanent lease arrangements."