Dublin becomes more attractive to multinationals as office rents drop 30%

DUBLIN has become a significantly more attractive location for multinational companies in light of the cost of occupying office buildings in the capital falling by just under 30% over the last 12 months.

A new international survey from property company, DTZ Sherry FitzGerald shows that Dublin has gone from being the 20th most costly place to set up an office in 2008 to the 33rd most expensive location asof the end of last year.

The improvement puts the capital on a par with leading European cities such as Amsterdam, Rome and Stockholm for foreign direct investment hub choices.

The west end of London, central Tokyo and Washington DC were listed as the three most expensive locations to set up offices, according to the latest report.

“Ireland was very uncompetitive internationally at the height of the Celtic Tiger. However, property costs have fallen faster here than in many competing countries and Dublin is now more closely aligned with cities such as Copenhagen and Brussels, rather than Munich and Zurich, which remain significantly more expensive,” said Peter Waller, director of corporate services at DTZ Sherry FitzGerald.

However, Mr Waller warned that although falling occupancy costs are a key factor when it comes to any city attracting international business investment, Dublin still has some weighty cost issues to manage if it is to seriously enhance its standing as a potential foreign hub for multinational companies.

“Most business costs have declined over the last 12 months. However, some services – and business rates in particular – remain very significant outgoings for occupiers. While business rates didn’t increase in Dublin for 2010 they remain at a level that is unsustainable if Dublin is to maximise its competitiveness to multinational companies. The corporate sector cannot afford the current levels of contribution to local authorities in Dublin,” he added.

Indeed, the IBEC-affiliated Retail Ireland representative body has called on local authorities around the country to grant retailers a 10% rebate on their commercial rates bill.