In a major boost to the Dublin office market, the Irish Aviation Authority has signed an agreement to take a new 25-year lease for 38,000 square feet of office accommodation at the former headquarters of the Irish Times in Dublin 2.

The Times Building is being developed by Cavan-based P Elliott & Co on D'Olier Street. The company acquired the building for €29m in 2005 and a redevelopment of the property is currently underway.

The Irish Aviation Authority is expected to move into the building in April 2010 and neither side would not be drawn on the rent to be paid.

The property comprises about 55,000 square feet of offices, 15,000 square feet of retail space and four apartments overlooking Trinity College.

The landlord was represented by HT Meagher O'Reilly and the tenant by GVA Donal O Buachalla. CBRE is also acting for P Elliott & Co.

The letting is one of the most significant in Dublin this year as the capital city's office market has seen vacancy rates exceed 20% in recent months.