Scrapped TikTok deal another troubling omen for Dublin office market

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Scrapped TikTok deal another troubling omen for Dublin office market via IrishTimesBiz

Marlet’s Shipping Office scheme on Sir John Rogerson’s Quay where TikTok had been in talks to take up a leaseLike an unexpectedly brisk wind in the middle of a heatwave, the news that TikTok has pulled out of talks to rent 16,443sq m of space at a prime office scheme in Dublin’s docklands may send shivers down a few spines.

To accommodate these new hires, the company said it would still proceed with its move to Mapletree’s 19,509sq m Sorting Office building in Dublin’s docklands after signing the lease last year. Having agreed the heads of terms of an agreement, TikTok is also expected to ink a deal to rent 7,432sq m available at Iput’s Tropical Fruit Warehouse in Dublin’s south docklands.

Regardless of cheery commentary about supply and demand dynamics in the Dublin office market from some quarters, it is impossible to separate TikTok’s decision this week to back out of negotiations with developer Pat Crean’s Marlet Property Group from other recent announcements by tech companies.

Some commercial property experts are already bracing for “a year of two halves” in the Dublin market, as Cushman & Wakefield put it in a report last month. Led by tech sector employers, record-breaking levels of investment in the first six months of 2020 saw the net Dublin office vacancy rate plunge to 5.9 per cent, down from pandemic highs of 7.5 per cent, July data from the real estate services company indicated.

 

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Don’t panic. It’s only temporary.

The writing been on the wall 4 quite some time,Major multinationals halting recruitment,some laying off staff,Intel increasing investing in technology 2 replace staff, I'd not B surprised if FB reviewing their presence here & yet our economy entirely reliant on these companies

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