£100m of commercial property due to come on to Northern Irish market
H1 2016 has yielded "positive results" for the Northern Irish commercial property market, with more than 230,000 sq ft let, and £100m of property due to come on to the market, according to property expert CBRE. The announcement of a new technology centre by Tullett Prebon and 215,000 sq ft of grade A space in Bedford Square, developed by McAleer & Rushe, are also boosting optimism. Brian Lavery, managing director, CBRE NI, said there was "plenty of activity across all sectors."
COMMERCIAL property assets totalling £100 million are due to come on to the market in Northern Ireland in the autumn, according to property experts CBRE.

A busy selling season is forecast by the company in its latest bi-monthly research report which highlights continued activity into the latter half of the year.

The analysis showed "positive results" the first half of 2016 for the office market, with more than 230,000 square feet of lettings achieved.

Among these were 17,650 sq ft let to Tourism NI at Linum Chambers; 6,000 sq ft to office space provider Regus at Arnott House; and 5,500 sq ft to global IT company Genesys at The Linenhall.

Prime rents are currently at £17.50 per sq ft and are expected to climb to £18 by the end of the year.

The market has been further encouraged by the announcement of Tullett Prebon to develop a new technology centre, creating 300 jobs, while demand generally is "sitting at an encouraging 750,000 sq ft", the report noted.

"While there is little speculative development of Grade 'A' office stock under way, many schemes have been granted planning, most notably the 215,000 sq ft of grade A space being developed by McAleer & Rushe in Bedford Square," said Brian Lavery, managing director, CBRE NI.

"The latest results from our research are encouraging. Buying activity for the foreseeable future will predominantly emanate from private equity and debt buyers, as opposed to institutions which are still considering their appetite for property after Brexit.

"There has also been an increase in the appetite of local financial institutions to lend towards real estate which will support increased private debt purchasing in the short-to-medium term."

Meanwhile, he said "postive results" in retail in Northern Ireland in July and August had helped step up momentum, with many shoppers travelling from the Republic due to depreciation of Sterling.

In addition, the sector has been boosted by several new store openings including Stradivarius on Donegall Place, The Entertainer in CastleCourt and Pandora at Cornmarket.

Plans are also progressing for a drive-thru Starbucks at Connswater, while TK Maxx, B&M Bargains and JD Sports are due to open new stores at Ards Shopping Centre later this month.

"There is plenty of activity across all sectors," Mr Lavery added. "Retail is seeing development across Belfast, with Westwood Shopping Centre being redeveloped and Primark's 40,000 sq ft extension at Castle Junction under way.

"In terms of hotels, Belfast currently has five projects on site, with City Quays to be operated by Mariott International, and the Beannchor-led Bullitt hotel on Victoria St, notable inclusions.

"Zone A retail space in Belfast city centre is at near maximum occupancy, so the focus going forward must be on key city centre game-changer schemes such as Royal Exchange and the regeneration of Royal Avenue.

"These are crucial to meet ongoing demand from potential retail occupiers."