Peloton gets on its bike while Facebook backpedals on Cork expansion due to Covid-19
A request for ‘grade A’ office space of 65,000-70,000sq ft in Cork has come from CBRE in Cork and London, without formally identifying Peloton as the client. Picture: Larry Cummins
The Covid-19 pandemic has encouraged one major office hunt in Cork City for fitness and health company Peloton, which is seeking space for up to 700 employees this year.
However, the Coronavirus has also led Facebook to moderate its inquiry for up to 100,000 sq ft in the southern capital, where it already has a presence via offshoot firm Oculus VR.
While there’s good news for the Cork economy, with unofficial confirmation that Peloton is seeking 70,000sq ft of city centre offices via agents CBRE - for occupation as soon as late this year - sources also indicate that Facebook’s 2020 low-key market pitch for space in Cork for up to 1,000 employees, in 100,000 sq ft of new offices in the city isn’t currently active.
Facebook, via agents Cushman & Wakefield, had been scoping considerable office space, capable of accommodating about 1,000 workers, for the start of 2022, according to sources.
That would be in addition to its Oculus Cork presence, as well as its Dublin’s docklands and Ballsbridge offices. It employs around 5,000 in Dublin and was expanding its physical footprint to c 850,000sq ft before Covid-19 drove the work-from-home necessity.
Facebook already has a Cork City presence through its burgeoning virtual reality (VR) company, Oculus, which is based in The Capital building on Grand Parade and has VR research links with University College Cork’s Tyndall Institute, with Tyndall also planning a major expansion Leeside, off the North Mall.
However, earlier this year, the global tech/social media company said its employees worldwide could continue to work from home post-pandemic, prompting a reassessment of its long-term office space needs.
Estate agents C&W declined to comment this week on Facebook’s Cork expansion plans. It's understood that any review it had been undertaking is not currently active and is deemed ‘historic’, with no requirement in the Cork market at the moment.
A spokesperson for Facebook said that as a growing company, they regularly undergo scoping exercises to stay abreast of commercial property availability, which the enquiries in Cork related to.
"We continue to hire and add to our 6,000 people workforce based in our current locations in Dublin, Cork and the data centre in Meath. We’re not actively looking for additional office space at the moment," the spokesperson said.
It compares to a decision early this year by Apple, which employs 5,000 at its Cork Hollyhill campus, to forge ahead with new offices in Cork at Horgan's Quay. However, Apple did scale back its immediate demand from 80,000-100,000sq ft to 40,000sq ft, which it is set to occupy later this year.
Meanwhile, commercial sector estate agents in Cork were asked this week to propose a city centre office location for up to 700 jobs for gym equipment and online/at-home fitness and exercise company Peloton, whose business took off due to Covid-19 work and stay-at-home demands.
The request for ‘grade A’ office space of 65,000-70,000sq ft in Cork has come from CBRE in Cork and London, without formally identifying Peloton as the client.
It's one of the single largest office requests for Cork in recent times, joining Apple and Amazon, which is also expanding its Cork presence.
Global fitness giant Peloton, which saw business rise 145% in the past year due to the pandemic, already has a small presence in Cork, at outsourcing specialists Voxpro in Mahon.
Peloton is a leading brand maker of treadmills and exercise bikes, as well as fitness apps, used both for online home fitness and in gyms. However, its growth trajectory and profits level were hit in recent weeks by the need to recall 125,000 treadmills after reports of small children and pets being injured by some models.
Saying news of the Peloton hunt was very positive for Cork City, estate agency sources say if the jobs are high calibre and well-paid, it will indicate demand for quayside offices in the likes of Horgan's Quay and Navigation Square, or at BAM’s Counting House offices on South Main Street’s Brewery. However, if they are deemed ‘back-office’, it may indicate a slightly more secondary location.
"But the inquiry is for the city centre, not suburbs or business parks," the was told.
A spokesperson for Peloton has stated that the company "is committed to growth and innovation. However, at this time, we have no news to announce regarding new sites.”
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