Rental deficit threatens tech firms’ growth

Several leading tech companies have warned that soaring rents and the chronic shortage of housing has cost jobs and is threatening their expansion plans in Cork.

Voxpro, one of Ireland’s largest business outsourcing firms, Solarwinds, Intel Security, and Dell Software, which all have significant operations in Cork City’s tech hub of Mahon, said the city’s lack of suitable rental accommodation, and its surging rental inflation, is impacting on their ability to retain and attract the “young, mobile, and multilingual workforce” that they rely on.

They said successful candidates have turned down jobs, and others have left jobs, because they could not find suitable high-quality rented accommodation.

Voxpro co-founder Dan Kiely has publicly backed an office developer’s ambitious proposal to build up to 200 apartments on a strategic site in Mahon — a proposal which requires a change of zoning.

“As CEO and co-founder of a growing business already employing over 1,000 staff in the local area and with plans to expand those numbers, I am concerned about the ongoing tightening supply of available housing in Cork City,” said Mr Kiely.

“The lack of adequate and affordable housing poses a major challenge to businesses in Cork trying to expand their workforce.

“The issue of housing is one of the biggest challenges which Ireland faces at the moment — it isn’t just a Cork problem.

“The lack of adequate supply coming on stream poses a real risk to businesses in Cork City.”

Mr Kiely’s warning comes ahead of a city council meeting on Monday during which councillors are due to vote on a major variation to the city development plan which could see several parcels of land in Bessborough, near Mahon, currently zoned for business and technology, being rezoned to include residential — a move that could provide up to 500 apartments.

However, the Irish Examiner has learned that John Cleary Developments (JCD), which built the two City Gate office complexes in Mahon where almost 2,300 people work, is now in pre-planning talks with City Hall to build around 200 apartments on a portion of another site in nearby Mahon where it already has planning permission for more offices.

The former MaCom site is zoned for business and technology. The zoning will have to be amended to include residential before JCD can seek planning permission for the apartments.

Several tech companies based in City Gate, and Voxpro which is based nearby, have backed JCD’s proposal.

Councillors will vote on the proposed variation on Monday on a raft of sites in Mahon — including the MaCom site.

A spokesman for City Hall said the proposed variation of the lands was first mooted in 2014 as part of a local area plan, and again in 2015. He said it is, in part, a response to the housing crisis.