The impact of Luas and DART Proximity on office rents
On this week's Down to Business, Gavin McLoughlin chats to Keith O’Neill, Executive Director and Head of Office Agency at BNP, about the impact of LUAS and DART Proximity on office rents.
A two-year study by BNP Paribas Real Estate confirms the value of nearby public transport access as key a factor in higher office rents in Dublin.
Exactly how much rental return is achieved from offices in the central business district to the outer suburbs has been collated on a new map by the real estate firm. The research tracks recent office rental levels along the main Luas and DART public transport lines crossing Dublin.
The analysis found that rents along the Green Luas line command the highest premiums, ranging from €205 per sq.m in the suburbs to €646 per sq.m for prime CBD locations (central business district), especially in the Dawson Street, St Stephens Green and Harcourt Street areas in Dublin 2.
The Green Luas line, which runs from Cherrywood in south county Dublin and crosses the city centre before heading out to Cabra, accounts for three of the top five rental returns currently available in the city, the research indicates:
1. Dawson Street (Luas Green Line) - €646 p.s.m (per square meter) / €60 p.s.f (per square foot)
2. Grand Canal Dock (DART) - €614 p.s.m. / €57 p.s.f.
3. Harcourt Street (Luas Green Line) - €603 p.s.m. / €56 p.s.f.
4. Charlemont (Luas Green Line) - €592 p.s.m. / €55 p.s.f.
5. Lansdowne Road (DART) - €581 p.s.m. / €54 p.s.f.
Rents on the Red Luas line range from €129 per sq.m in the west suburbs to €570 per sq.m in the north docklands.
Similar analysis along the DART line indicates how valuable commercial districts have been established in close proximity to DART stations, especially around Grand Canal Dock and Lansdowne Road. Rents on the DART line range from €151 per sq.m in the north suburbs to €614 per sq.m in the south docks.
The BNP Paribas commercial property map tracks average rents over the past two years for properties within a 10-minute walk of each station. It is based on a representative sample of ‘Grade A’ office lettings, the ‘best in class' new or refurbished office accommodation.