According to new research, the essence of the technology, media, and telecommunication sector to the office market in Dublin cannot be ignored. In the words of Knight Frank who are one of the largest agents, the development in the TMT industry across the globe has brought about significant changes in the various office markets and only a few cities have witnessed the effect of the rise in technology as much as Dublin.
Out of the top ten office deals in the previous year, reputable brands like Alphabet (Google), Amazon, Facebook, and the owners of LinkedIn, Microsoft are behind six of the ten deals. According to a reliable survey, the trend is not coming down anytime soon as the acquisition of The Chase in Sandyford by Google which is measured to be 4,914sq m (52,900sq ft) will be the first of several lettings for the technology, media and telecommunication sector in 2018.
These brands mentioned above are not just trailblazers in the technology sphere; they were reputed to be among the largest organizations in the world based on market capitalization, and it is only Apple whose European headquarters is based in Cork had a better year than these companies in 2017. However, Apple, irrespective of its magnificent capacity is witnessing a rapid expansion and striving hard to become the first trillion-dollar brand. For instance, the revenue of Facebook in the fourth quarter of 2017 increased by 48 percent year on year to $12.9 billion (€10.5 billion).
Office Market in Dublin growth
According to Declan O’Reilly of Knight Frank, he pointed out that the primary factor responsible for the growth of the office market in Dublin in the last few years is its ability to affiliate its fortunes with the world’s renowned and fastest-growing brands. He said that the expansion started showing signs after 2010 as the space occupied by these four biggest TMT companies in Dublin expanded fourfold over the time. It is interesting to know that venture capital funding to technology in Dublin is moving at the same pace with the take-up of technology which supports the view that the coming of these renowned global brands is encouraging the activities of start-ups in Dublin.
Bringing Dublin into the picture in an international scene offers fascinating outcomes according to O’Reilly. These top five renowned brands inhabited less space in Dublin than in New York and London. For example, these companies occupied two million square feet in Dublin; they used up an estimated two million, six hundred square feet in London while they held more than three million square feet of the land mass in New York. Nevertheless, these big businesses are responsible for a much higher relative footprint with 4.9 percent recorded in Dublin while 1.1 percent was recorded in London and 0.7 percent earned in New York.
O’Reilly observed that the space used by these brands in Dublin, New York, and London diminished when compared with their operations in their individual global headquarter cities, this space is measured to be over 45.5 million square feet in total.