OFFICE MARKETThe Dublin office market has got an important shot in the arm with the news that Hedgeserv, the American hedge fund management company, is to rent all the remaining space in 75 St Stephen's Green, the landmark Dublin office block developed by Garret Kelleher's Shelbourne Developments.

The company will occupy all the available 3,108sq m (33,454sq ft), making it easily the largest city centre letting so far in 2008. The rent is understood to be at the highest level in the city - €700 per sq m (€65 per sq ft) and €4,500 for car-parking spaces.

The terms are all the more interesting given the size of the letting and the fact that market sources believe that the deal is based on a long term lease of 25 years with no break options. An 18-month rent-free period is thought to be included.

The letting is expected to strengthen confidence in a Dublin office market that some feared would be affected by the ongoing negativity in the residential sector. With a string of leading companies actively in search of high quality office accommodation in the city - the Bank of Ireland alone is looking for a front office headquarters and a separate back office headquarters with a total space of 74,320sq m (800,000sq ft) - the letting terms agreed on the St Stephen's Green block will set a new benchmark for top quality office buildings in the city.

Michael Turley of Turley & Associates, who advised Hedgeserv, was not available to comment.

Kelleher's agent Jones Lang LaSalle had already secured other top tenants for 75 St Stephen's Green, including Dolmen Stockbrokers, Avoca Capital, Riverdeep and solicitors Maples & Calder. Kelleher retained the penthouse floor for his own headquarters. The previous highest rent in the city was the letting to Avoca Capital at €672.74 per sq m (€62.50 per sq ft) which was completed last summer.

Kelleher is renowned for his high profile developments, including the Chicago Spire, due to become the tallest residential tower in North America, which recently had an elaborate sales launch at a marquee in Fitzwilliam Square.