The FÁS head office at Upper Baggot Street, Dublin 4, is expected to be demolished and redeveloped by new owners Kennedy Wilson when the lease expires next month and the State agency relocates to Lower Mayor Street in the north Dublin docklands.

The move will greatly reduce the State agency’s rental expenditure.

It is currently paying €269 per sq m (€25 per sq ft) for 8,361 sq m (90,000 sq ft) under an unusually long lease which has run for 47 years. The rent is due to drop to €161 per sq m (€15 per sq ft) when it relocates to Castleforbes House, a 5,109 sq m (55,000 sq ft) block which has been vacant since it was completed about seven years ago by Liam Carroll's Zoe group. FÁS will initially occupy around 2,787 sq m (30,000 sq ft) and 50 car parking spaces at €1,500 each per annum. The building is now owned by investors Arthur Molloy and Mick Sherry.

Conor Whelan of BNP Paribas acted for FÁS.