Cork's €130m Penrose Dock defies fears of a Covid office slump

Development set for full occupancy, capable of hosting 2,350 workers on the city's north quay

Thu, 30 Jun, 2022 - 12:00

Property Editor Tommy Barker reports

OFFICE deals and development continue to roll out in Cork City and suburbs, instanced by the news that a 250,000 sq ft development on the north quays has moved to fully let status.

It comes as the global pandemic recedes and as international companies appear to see a future in office-based employment, either on full-time or a hybrid-working basis.

Confirmation of the final letting of space at the north quays Penrose Dock development on Penrose Quay comes this week from developers JCD Group, which notes that “when all occupiers are in place before the end of the year, there will be 30 companies with capacity for over 2,200 employees” working from the award-winning Gold LEED standard office development.

The development is next to the mixed-use development on Horgans Quay, HQ, where Apple has taken further city-centre offices; that’s in addition to Apple’s plans to yet again expand its main Cork campus at Hollyhill, after a major site purchase via City Council.

It also comes as up to 300 jobs are set to flow on the south quays, at O’Callaghan Properties’ Navigation Square (NSQ) development.

News of NetApps taking 28,500 sq ft at NSQ2 was exclusively reported in the Irish Examiner earlier this month, as that company aims to have 100 employees at this year’s end, scaling to 300 at the OCP development next to major anchor Clearstream’s 90,000 sq ft presence.

NetApp has temporary offices at Clarendon/BAM’s Horgans Quay development at the moment, where a second office block is under construction by Kent Station.

Meanwhile, agreements have been signed for the last available space at the €130m 250,000 sq ft Penrose Dock development, but the identity of the occupier hasn’t yet been revealed by JCD Group, pending a formal announcement. “The identity of the latest tenants will be revealed at a later stage,” said a spokesperson.

The new arrival will join other recent tenants such as Green Rebel, EIH2, Action Zero, and BDO accountants, while existing occupier Qualcomm has also taken additional space there.

Others in the Penrose Dock mix of technology, life sciences, green energy, and professional services firms include Varonis, Grant Thornton, Cadence, Cloudera, Morgan McKinley, Matheson, and Ibec.

The resilience of office demand globally, seen strongly in Dublin and in Cork too on the available evidence, comes after the turmoil of two years of Covid-19 lockdowns, remote working, and fears of “the death of the
office”.

JCD development manager Emmet Foley says that “how companies and individuals use office space has transformed since Covid with the successful implementation of hybrid working arrangements.

“The confirmation of full occupation of Penrose Dock reaffirms the importance that companies place on the right type of office space. This is consistent with other national and international locations which are seeing companies invest in best-in-class offices for their staff with a clear focus on collaborative fit-out designs and amenities, in highly accessible locations with the right ESG credentials.”

Best in class environment, Gold LEED and and ESG (Environmental, Social and Governance) compliance is key to deals, say JCD Group

The move to full occupancy/take-up at Penrose Dock comes as a site next door, owned by Bandon-basedentity Karamex, linked to the O’Leary motor family, is primed for development two years after An Bord Pleanála rejected a third-party appeal against it.

It’s for a similar development to Penrose Dock, comprising of two blocks, one six storeys, the other seven storeys, replacing a low, red-brick-facaded building on the quay, next to the 1990s’ Penrose Wharf warehouse conversion to a business hub by the Lynch family.

Designed by Wilson Architecture, the fully-booked Penrose Dock development was named as both the Best Overall Building of the Year and the Best Large Office
development at the National Building and Architecture of the Year Awards 2021.

Wilsons (who also did the Elysian) have been on board on the Karamex site alongside too, via JCD links.

Excavation /construction is underway on The Prism, on a tiny site at Clontarf Street/Deane Street/ Oliver Plunkett Street Lower near the city's bus station at Parnell Place. Pic: Larry Cummins.

Meanwhile, pivot sitesbetween Cork’s north and south expanding docks include the Port of Cork site — which is earmarked for a high-rise hotel — and the Prism offices site next to the city’s bus station where site excavation is under way for New York-based Tower Holdings on the latter.

Set to go on site in 2023 is the 16-storey office tower planned for Albert Quay

Nearby, next to the JCD-developed One Albert Quay by City Hall and O’Callaghan Properties’ Navigation Square, is the cleared site previously occupied by Carey Tool Hire and TheSextant bar on Albert Street/Albert Quay, which is ready for development in 2023.

Planning use was successfully switched from a 25-storey apartment tower, deemed to be financially non-viable, to a 16-storey €100m office and bar/restaurant/hospitality development.

This Albert Quay/Albert Street project “is now at the detailed design, costing, and tendering phase, with the project likely to commence in early 2023,” revealed a JCD spokesperson.

Logitech are taking 46,000 sq ft at Mahon, next to the CSO office. Pic: Larry Cummins

Outside of the city centre, JCD is currently completing an angular new 46,000 sq ft office building for expanding company Logitech, which plans to locate up to 500 employees there, starting to move in by September (pictured here).

Mahon is also due to accommodate some 300 jobs as another tech company, Expleo, confirmed that it is set to employ 200-300 people at a proposed new regional hub in Mahon.

Expleo already has offices in Dublin and Belfast, and is to open similar regional hubs to Cork’s in Galway and Limerick.