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Flexibility of Leases

Investing in Ireland

It`s a Buyer`s Market...

• Gross over capacity in the market, primarily in Dublin, in office & industrial supply.
• Intense competition in the market place between landlords and developers.
• Dublin office market is c. 36.6 million sq ft, with a Vacancy Rent of c.22%.
• Prime rents have fallen as much as 40%.
• Construction market declined from c.€38bn in 2006 to an expected €10bn in 2010 and costs have declined to 1999/2000 levels.
• Currently the industry is tendering to survive with tender pricing decreasing by up to 34% in 2010.
• Valuation of IDA Land holdings have fallen to pre-year 2000 prices.

Typical Leases

• The market generally seeks leases of 20 - 25 years FRI, with break clauses at years 5 & 10
• Rent Reviews are typically every 5 years.
• Rent-free periods, contributions to fit out and short term break options are now the norm.
• Strength of the covenant is the key to negotiating low lease terms, rent free periods and fit out options and expansion reservations.

Cost Guide

(All costs relate to urban areas, e.g. Dublin)

Manufacturing / Technology Buildings - €3 - €15 per sq.ft

Warehouses - €1 - €10 per sq.ft

Offices - €9 per sq.ft - €35 per sq.ft (CBD areas)

Land (IDA lands which are zoned for industry / science & technology and fully serviced):

• Rural locations - €150,000 - €400,000 per hectare
• Urban Location - €300,000 - €750,000 per hectare

Further information about real estate and investing in Ireland...