Increase in Office Leasing Activity in Belfast in Recent Months
CBRE analysis shows the volume of office leasing activity in Belfast almost doubled quarter-on-quarter in Q3 2014
Belfast, 14th October 2014 – According to the latest analysis from property advisor CBRE, more than 200,000 square foot of office leasing activity occurred in the Belfast market in the first nine months of 2014, with more than half of this activity occurring in the last three month period alone. According to CBRE, a total of 117,106 square feet of office lettings were signed in the city during Q3 2014, which is almost double the volume of leasing activity recorded in the second quarter of the year.
37% of office leasing activity in Belfast in the third quarter of 2014 was to consumer services & leisure tenants. A further 24% of take-up was attributed to business services occupiers with the computers & high-tech sector accounting for a further 11% of take-up in Belfast in the quarter. Only 10% of office take-up in Belfast during Q3 2014 comprised public sector tenants, proving that this sectors’ dominance is slowly being eroded.
According to David Wright at CBRE Belfast “We have experienced strong volumes of activity in the Belfast office sector over recent months and are encouraged by recent job announcements across the region which bode well for this sector. We have also witnessed an increase in prime rents in the Belfast office market, with prime headline quoting rents now in the order of £14.50 per sq. ft.”
However, the lack of Grade A office accommodation in the city was also highlighted as the property consultants launched their Belfast City Centre Office Development Map which shows over 630,000 square feet of office accommodation in Belfast is currently awaiting a planning decision while almost 1.9 million square feet of office accommodation has achieved planning permission but the majority has not yet gone on site.
David Wright said, “We are currently aware of at least 30 companies actively searching for Grade A accommodation, requiring over 620,000sq ft of office space. This is good news for the city and the economy as a whole with 82 per cent of demand coming from the private sector reducing our historical reliance on public sector tenants.
“As it stands, 37% of the total square footage in planning could expire by the end of 2015 and some of the schemes that have achieved planning permission may not be developed in the short to medium term due to either a change of use for a particular site or issues around securing funding.”
The map is used increasingly by potential investors as an orientation tool for the city and details the 1,926,423 sq ft of office developments with planning granted and 633,969 sq ft with planning pending.
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About CBRE Group, Inc.
CBRE Group, Inc. ((NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.eu
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 130 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie./ni