Catherine Connolly (Galway West, Independent)
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96. To ask the Minister for Public Expenditure and Reform if he will provide details of any analysis carried out by his Department into the impact of the ongoing rise in rental prices on the cost of the rented portion of the OPW's office accommodation portfolio; and if he will make a statement on the matter. [56397/22]

Patrick O'Donovan (Limerick County, Fine Gael)
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A key function of the Office of Public Works (OPW) is to provide office accommodation for all Government Departments. In this regard, OPW holds a portfolio of property throughout the country to meet the various operational needs of the Civil Service, the Gardaí and various other State Bodies. The OPW’s objective is to hold, manage and maintain a property portfolio that is aligned to Government delivery needs in terms of size, location, specification, value for money and optimum utilisation.

The OPW office portfolio comprises some 890,488 square meters (year-end 2021), 61% of which is owned and 39% leased. It is a significant and diverse portfolio distributed throughout the country and includes a range of differing types of office provision, from prestige heritage buildings to brand new grade A office accommodation.

In its role of managing the extensive office accommodation portfolio, the OPW is consistently monitoring the commercial office market, both in terms of the current and future availability, in addition to noting available information on transactions that have been completed by third parties.

Given the current global instability on a number of geo-political / economic fronts the future of the commercial property market is somewhat uncertain. However broadly speaking, Dublin office rents for prime city centre Grade A office accommodation appear stable. There is recent market evidence to suggest premiums have been paid for new, best in class, city centre offices where particular occupiers have specific Sustainability, and Environmental, Social, and Governance requirements to satisfy, and require a certain quantum of space.

It is worth noting significant leasehold savings were secured during the office rationalisation programme of 2009 – 2012. As rent reviews arise they are negotiated, in accordance with the terms of individual leases, by chartered surveyors on behalf of the OPW to ensure that the best outcome for the State is achieved.

The OPW will continue to work with its clients to ensure that office accommodation across the owned and leasehold office portfolio is used to its optimal potential while at the same time meeting their operational requirements. All options within the existing portfolio, (owned & leased) including any capacity that may arise as Blended Working policies are rolled out, will be fully explored before new lease arrangements are considered.