A good Cork office to land at the Airport Business Park

By Diarmaid Condon

CBRE has just announced the sale by private treaty, of Building 2600 at Cork Airport Business Park.

This is described as a ‘prime office investment’, currently let to Clearstream Global Services Limited under a 25-year FRI lease finishing in March 2024 (circa 5.5 years remaining).

Subject to upward only rent reviews, it has a yearly rent of €637,500. There is a parent guarantee from Clearstream International S.A. It is described by Brian Edwards, of CBRE Cork, as ‘a great opportunity to acquire a modern, recently completely renovated, two storey office building in one of Cork’s most successful office parks.”

The guide price of €7.5m would equate to a net initial yield of 7.84%, after deducting standard purchaser’s costs. Cork Airport Business Park is one of the city’s most high-profile suburban office locations. It has excellent access to Cork city centre.

Edwards says that units in this park are highly sought-after. He describes it as a “superb office location attracting a high calibre of national and international corporations such as Amazon, IBM, BNY Mellon, Logitech, Aon Hewitt, OpenText and Redhat.”

Building 2600 is located on a high-profile site at the entrance to the office park. It extends to a gross internal area of approximately 3,805 sq m (40,953 sq ft) and is a modern two storey office building. The property was completely renovated and upgraded in 2015.

It has an access-controlled reception area, open plan offices, private offices, meeting rooms, training rooms, board room, staff restaurant, kitchenettes, communications rooms, shower and changing facilities. There are 162 car parking spaces.

It has consistently been the best performing of the commercial real estate sectors in Cork over the last number of years,” says Edwards. “Robust office demand, coupled with the lack of development for several years has resulted in rising rents and low vacancy rates. Prime city centre office rents are currently at €350 psm (€32.50 per sq ft).

Edwards notes an increasing focus from largescale investors on assets in the Cork market. He sees this as a very welcome broadening of the investor capital base, illustrating the confidence that these buyers have in the city’s investment market and its future. He says that these clients are attracted by the excellent investment returns relative to Dublin, with positive prospects for future rental growth and yield compression. Prime office yields currently stand at 5.5%.

Edwards feels that Building 2600 will carry a wide appeal, with interest likely from international and Irish institutional investors along with well-funded private investors.

Further information from 021 491-7254 or www.cbre.ie.