The State's second largest stockbroking firm is seeking to avail of break option in its office lease at The Sweepstakes in Ballsbridge, writes JACK FAGAN

GOODBODY Stockbrokers, the State’s second largest stockbroking firm, is looking for a new headquarters in Dublin to coincide with a break option in its office lease at The Sweepstakes in Ballsbridge.

The move comes almost 18 months after the firm was sold by AIB to the Kerry-based financial services group Fexco Holdings for about €24 million.

Goodbody is expected to concentrate its search in the Dublin 2 and 4 areas for 3,251sq m (35,000sq ft) of high-quality space to replace the 15-year-old accommodation at The Sweepstakes, close to the AIB headquarters.

The broker’s decision to avail of a break clause in its lease to look for a new HQ is likely to have been prompted by the fact that office rents are now considerably cheaper than what Goodbody is currently paying its landlord in Ballsbridge.

Rents in The Sweepstakes are believed to be in the region of €484 per sq m (€45 per sq ft), a good deal higher than the going rate of €322/€ 344 per sq m (€30/ €32 per sq ft) being quoted for new office space around the city centre.

However, there is quite a limited choice available of stand- alone office blocks of this size because of the absence of new developments since the property market collapsed.

Goodbody’s announcement that it is seeking a new HQ will inevitably trigger a response from the company’s landlord who won’t want to lose a high-profile tenant in the current difficult business environment.

Goodbody, which is being advised by James Nugent of Lisney, is the State’s longest-established stockbroker, dating back to 1877.

Almost two months ago, Davy, the largest stockbroking firm in the State, also indicated that it was looking for a new headquarters in Dublin 2 or 4.

It has been based in Dawson Street for many years and is looking for considerably larger premises, extending to 5,574sq m (60,000sq ft).