eBay's PayPal to lease large west Dublin building
(The Irish Times Via Thomson Dialog NewsEdge)Office Sector : PayPal, the money transfer arm of online auction giant eBay, is leasing the entire Atrium building at Blanchardstown for an annual rent of around 1.1 million, giving Dublin's suburban office market a major boost after years of double-digit vacancy rates.
The e-commerce firm has signed up for two five-storey blocks, which total 6,968.66sq m (73,934sq ft) of space, as part of a major expansion of its Irish operations.
According to market sources, PayPal has agreed a competitive rent of 162 per sq m (15 per sq ft) on a 20-year lease that includes break options.
The two buildings are strategically located at the entrance to the Blanchardstown shopping centre and overlook the N3 motorway.
PayPal's decision to lease the entire Atrium building will be viewed as yet another sign that Dublin's suburban office sector is turning a corner after more than three years of plummeting rents and rising vacancy rates.
West Dublin was one of the areas worst hit by the dot.com meltdown with large-scale office complexes proving almost impossible to let.
Although completed in 2002 by developers Green Property, which also owns the Blanchardstown centre, the PayPal deal is the first letting on the site.
Paul Culhane, development director with the company, said he was "delighted" to have secured the eBay subsidiary for the Atrium "after stiff competition from other locations".
Paul Scannell of agents HWBC, which acted for Green Property, described PayPal as an excellent "addition to the Blanchardstown centre" but declined to comment on the lease terms.
HT Meagher O'Reilly, which advised PayPal, also refused to confirm the rental terms, citing client confidentiality.
The Atrium complex is regarded as one of the finest office buildings in the Blanchardstown area. Architects A&D Wejchert designed the two buildings, which are linked by a full-height, glazed atrium. The scheme also has 111 surface car-parking spaces.
PayPal is currently housed with its parent company eBay at the Blanchardstown Corporate Park. The online auction giant and its subsidiary employ 900 people in Ireland but this figure is likely to increase by more than a third under their recently announced expansion plans.
Ebay is listed on the Nasdaq and has a market capitalisation of 45 billion.
[ Back To TMCnet.com's Homepage ]