Rents rise to fuel resurgent office market in 2018

Publishing its latest report, it said investment volumes last year passed 2016 to hit £305 million, and predicted that similar levels will be achieved in 2018.

Still, the 2017 commercial property report noted that capital values remained “some way off pre-recession levels,” although core local markets “remain robust”.

Investment volumes reached £305m, including £123m paid by Wirefox for CastleCourt, while office take-up in 2017 fell to 325,000sqft from 535,000sqft in 2016

Vacancy rates for prime Belfast retail units continued to improve, with just 9% unoccupied at the end of 2017.

The industrial sector performed strongly, with the sale of the former Coca Cola factory at Lambeg, comprising 266,470 sq ft, the most notable transaction.

Lisney managing director Declan Flynn said the market had operated well against a challenging backdrop.

“We are confident that occupier demand for Northern Ireland will increase throughout the next 12 months, with particular focus on the prime and regionally dominant locations.

“Retail investment in key Northern Ireland schemes is likely to generate strong results and, with the letting strategies of assets such as CastleCourt, The Junction, The Boulevard and the Odyssey hitting their stride, we expect to see a number of new lettings announced.

“Lisney’s Annual Retail Study has shown that the trend of reduced year-on-year vacancy continues apace.”