Annual Report 2005 - The Office of Public Works

1. Infirmary Road, Dublin 7.
2. Jamestown Road, Inchicore.
The transfer is being finalised with Dublin City Council.
• Following Government decisions two sites are in the final stages of being transferred to
The Affordable Homes Partnership:
1. Part of Harcourt Terrace Garda Station site, Dublin 2.
2. Broc House, Dublin 4.
The combined value of the four sites is in the order of E30 - E50m.
2005 Market Overview
The Dublin office rental market
The year 2005 saw the completion of some 110,000 square metres of new office space, which
represented an approximate 50% increase on the previous year; most of it located in the city
centre, Dublin 2 and Dublin 4. The level of uptake of new space was slightly lower than in
2004, with most activity occurring in the last quarter. Overall vacancy rates were largely
unchanged from 2004; depending on the measure used they were slightly higher or slightly
lower than last year. However, this overall trend masks significant regional variation. Uptake
was higher in the prime central letting area, particularly for modern space but there is still a
considerable surplus in other locations, e.g. Dublin 1, 7 and 8.
There has been some evidence of rental growth, particularly in large modern, well-located
offices. However, older less well-located premises are proving more difficult to let with a
significant, but decreasing level of incentives still available.
The impact of decentralisation
Reflecting the impact of the decentralisation programme, the Office was not very active in
acquiring property in Dublin in 2005. Where space was acquired it was for the purpose of
meeting special local needs. On the other hand, the Office has been very active in acquiring
sites or buildings to accommodate the new regional offices of the decentralising Departments.
To date, negotiations are completed or at a significantly advanced stage in 23 locations. In the
case of 5 locations, OPW owned sites have been identified and will be used to accommodate
decentralised offices. In the case of another 6 locations sites have been acquired from Local
Authorities. In the balance of the 23 locations, privately owned sites have been either acquired
or are close to being acquired.
Over the next two to three years, the Office's property focus will turn more and more to the
acquisition of properties and sites in the regions to meet the accommodation requirement of
decentralising Departments.
In Dublin, the focus will increasingly be on the disposal, surrender and rationalisation of the
space, which will be vacated by Departments relocating to the provinces.
Property Sales
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Under the Office's Programme for the Transformation of State Assets, a concerted effort has
been made in recent years to identify State properties, which are either being under utilised or
Fota House,
Co. Cork.