Irish billionaire Denis O’Brien’s Island Capital is on the cusp of securing a record Dublin rent for this cycle at 65-68 St Stephen’s Green.
Aircraft leasing company AerCap is in advanced talks to lease 25,000 sq ft in the building at a rent of more than €60 (£43.60) per sq ft.
The €25m project, which comprises 75,000 sq ft over six storeys, is the first speculative development in Dublin for seven years.
When completed this December it will be the first building delivered on St Stephen’s Green in a decade.
The record rent reflects the paucity of new development in Dublin, which was hit hard by the global financial crisis. However, last year Irish capital markets and Dublin’s leasing market saw a strong resurgence that has compounded the supply squeeze, pushing rents on the limited volume of quality new office space back up to levels last seen at the peak of the last cycle.
The highest rent ever achieved in Dublin was €65 per sq ft, paid by US hedge fund HedgeServ at St Stephen’s Green in March 2008.
Knight Frank and JLL acted for Island Capital; AerCap was advised by CBRE.
