The RDS hopes to pre-let the new office development planned for its Ballsbridge site in Dublin 4 before it begins construction of the €100 million scheme.
The decision by the society not to build any of the four blocks on a speculative basis will make it more difficult to find a tenant, particularly as most other rival developers in the Dublin 4 area are either well advanced on office schemes or preparing to go on-site.
Last week An Bord Pleanála gave the go-ahead for the controversial RDS office scheme on Simmonscourt Road but ruled that one of the five blocks should be omitted. The first block will have a floor area of 3,885 sq m (41,820 sq ft) and is likely to cost close to €15 million to build. Two of the other blocks will be 4,799 sq m (51,656 sq ft) while the largest will be 7,381 sq m (79,449 sq ft). The planning appeals board has allowed the RDS to complete 40 per cent of the scheme before going to the expense of refurbishing the stand in the main grounds.
The Lisney agency has been appointed to handle the marketing of the offices despite strong competition from several other leading estate agents.
With so much cut-throat competition in the office market at the moment for the few major tenants around, experts suggested yesterday that the RDS may have no option but to change its strategy and build at least one block on a speculative basis.
The RDS will not have to look too far from its site to get an idea of the competition. Around the corner on Shelbourne Road, construction has begun on three office blocks of 14,400 sq m (155,000 sq ft) which will be ready for occupation within 14 months. On the opposite side of the RDS, development work is also well advanced on the Elm Park office scheme which will have about 18,500 sq m (200,000 sq ft) as well as a few hundred apartments.
An agent specialising in the Dublin office market says that most tenants want to move into a new building within six months of making the decision. For that reason, developers with buildings under way have an important edge over others in the market.
