Posted on Wednesday 2 January 2019 by John Mulgrew
Major investments in commercial property have been stymied due to the lack of a devolved government in Northern Ireland, it’s been claimed.
According to the latest Real Estate Outlook report from CBRE, there was take-up of 885,023 sq ft of office space across 84 transactions, in 2018. It says that was more than double the figure a year earlier.
Some of the major deals completing last year included PwC’s move to Merchant Square, the Northern Ireland Civil Service at 9 Lanyon Place and Allstate at Mays Meadow.
“During an unsettling period of political uncertainty, the local office market is an indicator of the health of the Northern Ireland economy, with the professional services and technology sectors in particular leading the way,” Brian Lavery, managing director at CBRE said.
“Currently we only have around 250,000 sq ft of grade A office space available fragmented across a number of buildings underpinning the need for more investment in this space.
“Alongside this office space growth, we are also seeing the green shoots of demand for residential living in the city centre. We believe this is the trend to track in 2019 and beyond as investors across the UK and globally continue to look for opportunities in this area.
“However, on a more positive note, we are seeing strong interest from a wide spectrum of investors for office investments in Belfast which is being driven by growing rents and demand, combined with limited supply of high-quality accommodation.”