{"id":8422,"date":"2019-02-08T16:52:04","date_gmt":"2019-02-08T16:52:04","guid":{"rendered":"https:\/\/lisney.com\/belfast\/?p=8422"},"modified":"2022-08-04T16:14:18","modified_gmt":"2022-08-04T15:14:18","slug":"demand-continues-for-serviced-offices-and-co-working-spaces","status":"publish","type":"post","link":"https:\/\/lisney.com\/belfast\/demand-continues-for-serviced-offices-and-co-working-spaces\/","title":{"rendered":"Demand Continues For Serviced Offices And Co-Working Spaces"},"content":{"rendered":"
By the end of 2018, office takeup in Northern Ireland totalled a record 885,000 sq. ft. according to research completed by leading commercial property agents Lisney.<\/p>\n
In a sector becoming more and more dominated by tech and digital companies, the market is also witnessing a pressing demand for serviced offices and co-working spaces which is expected to continue in the coming years.<\/p>\n
Declan Flynn, Managing Director of Lisney Northern Ireland, which specialises in office, retail, leisure and industrial property acquisition, disposal and investment, commented:<\/p>\n
\u201cDublin has seen an incredible 93% increase in co-working space take-up in Dublin within the last 18 months and having already made its way north, we believe this trend will remain and could trigger a structural shift within the general office market.\u201d<\/p>\n
\u201cQ4 saw a flurry of investment products come to market with annual transactions totalling \u00a3165m and the sale of Bow Street Mall to a private investor for \u00a312.25m recorded as the largest transaction of the quarter.<\/p>\n
\u201cThe office sector has performed well with investment in the sector achieving good depth of local, national and international demand demonstrating liquidity for good quality, appropriately priced product. Opportunities for the region can therefore remain by maintaining the discount or \u2018yield gap\u2019 between Northern Ireland and the rest of the UK.<\/p>\n
\u201cNotable transactions include the sale of The Metro Building for \u00a321.9m and the sale of Obel 68 for \u00a315.2m. However, the lack of new office stock has remained an issue in 2018.<\/p>\n
\u201cOffice supply will be bolstered by refurbished buildings such as Chichester House and new schemes such as the \u2018Sixth\u2019, City Quays 3 and Castlebrooke Investments\u2019 \u2018Tribeca\u2019 that will include 1,500,000 sq. ft. residential and office space with retail and hospitality space with the first phase including two Grade A office buildings<\/a> extending to 180,000 sq. ft.<\/p>\n \u201cAverage office take-up over the last five years is approximately 460,000 sq. ft. which contextualises just how strong demand for office accommodation is at present, and we can expect headline rents to reach \u00a323 per sq. ft. in 2019.\u201d<\/p>\n The retail sector in Belfast city centre experienced a significant downturn in footfall in Quarter 3 and into Quarter 4 following the fire in Primark located in the Bank Buildings.<\/p>\n Mr Flynn said:<\/p>\n \u201cIt\u2019s no secret that 2018 has been a testing year for retail in Belfast with completely unexpected circumstances thrust upon the city centre.<\/p>\n \u201cNot surprisingly activity has been slower than anticipated. However, there is evidence of a number of retailers pursuing new opportunities on our high streets, shopping centres and retail parks. Irish department store Guineys opened its doors in Belfast as did Matalan in CastleCourt, and out-of-town Brand Max, the Mike Ashley-owned discount fashion retailer, entered the Northern Ireland market in Connswater Shopping Centre.<\/p>\n \u201cInterestingly the food and beverage sector has continued to be buoyant with a number of outlets incorporating drive-thru offerings to customers.<\/p>\n \u201cOn an industrial front, requirements have been driven by retail nationwide distribution and this is very much in line with activity in the rest of the UK. Amazon has already set up shop in Titanic Quarter\u2019s Channel Commercial Park and we believe this is only the start of things to come as delivery-orientated purchasing continues to grow.<\/p>\n \u201cOpportunities do exist in Northern Ireland with emerging supply of refurbished and new stock and we are forecasting further growth in interest within PRS, student accommodation and serviced apartment Sectors.\u201d<\/p>\n