Gerry Barrett Selling €33.5M Office As Prime Regional Rents Hit New Highs
Having secured a line-up of blue-chip tenants including Genesys, Liberty IT and CVS, developer Gerry Barrett’s Edward Capital is seeking offers in excess of €33.5M for Alcantara, a newly developed, fully let office building at Bonham Quay in Galway’s docklands area.
The eight-storey property comprises approximately 71K SF and achieves around €2.4M in annual rent. Its sustainability credentials are a BER A3 rating, LEED Gold, WELL Gold, Wired Score Platinum and One Planet Living Leadership Status.
Phase 2 of Bonham Quay has already achieved headline rents of €40 per SF, Cushman & Wakefield recently reported, with uptake dominated by the June deal with healthcare data firm Datavant to lease two penthouse floors totalling 15K SF for around that rate, establishing a new high-water mark.
The company signed a 15-year lease with a break option in Year 10.
However, take-up in the city has been quiet in the first half of the year, with just two other small deals at Cloch Mhile and Queensgate, according to Cushman & Wakefield.
No new office developments are under construction in Galway beyond those already committed, and roughly 60% of the existing stock falls below A-rated standards. The city’s office vacancy rate is about 7.3%, which Cushman & Wakefield described as a “reasonably tight supply demand picture.”
An Bord Pleanala recently gave permission for a new 158K SF office campus in Knockacarra in Galway West Business Park, although construction has not yet started.
The €105M Bonham Quay will, upon completion, comprise 370K SF of office, retail, restaurant and cultural space capable of accommodating up to 2,600 workers. The former industrial site is being developed by Edward Capital, designed by BDP Architects and leased by Cushman & Wakefield.
