Hibernia REIT is preparing to start work on two new office projects in Dublin within the next two years, as its chief executive said he believes demand for “well-configured, prime offices” will hold up.
In interim results for the six months to 30 September, Kevin Nowlan said the REIT’s planning permission for the redevelopment of Clanwilliam Court now means the company has twooffice projects ready to be started in the coming 12-26 months.
Across the project and Harcourt Square the company will deliver 539,000 sq ft of new grade-A office space in the city.
But Nowlan warned of an unclear outlook for Dublin’s office market given the impact of the Covid-19 pandemic on demand.
“Until there is a clear pathway for workers to return to their offices in meaningful numbers, we expect Dublin office vacancy rates to continue to rise and rents to remain under pressure,” he said. “In our view, the pandemic is accelerating pre-existing changes in working patterns, such as more remote working, a greater focus on collaborative spaces in offices, increased emphasis on employee wellness and office buildings’ sustainability credentials.”
He added: “This is something we had been factoring into our building designs already, as can be seen in the Windmill Quarter. As the pandemic has continued, we believe the importance of offices for employee collaboration, creativity and culture has become increasingly apparent and we remain positive about the long-term prospects for well-configured, prime offices in Dublin’s city centre.”
The REIT posted an 8.7% rise in revenue to €36.6m (£32.8m) and a loss of €34.2m.
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