There has been no secret made of the fact that there is a shortage of suitably sized, Grade A office floor plates in Belfast.\u00a0Several years ago we raised the prospect that by 2014 demand for Grade A office accommodation in Belfast would outstrip supply. Due to growing demand and a lack of capital to support new construction or to even purchase development land, we are now in a position whereby this is a reality.<\/p>\n
With financial indicators changing in a positive manner, a greater number of investors are now searching for opportunities in Greater Belfast that will allow them to take advantage of the resulting rising rental values. The Lisney Northern Ireland Commercial Property Report, issued last month, revealed that we are already seeing prime \u2018headline\u2019 rental levels on the move with the most recent evidence rising to \u00a315.50 per square foot. This is still considerably lower than average headline rents in cities such as Cardiff, Dublin and Glasgow, putting Belfast at a clear advantage in terms of occupational costs.<\/p>\n
Whilst we do expect to see more cranes on the horizon in Belfast in 2015, investors keen to secure their presence in desired markets immediately are looking outside the box to sites which provide opportunities outside the current use.<\/p>\n
For example, acting on behalf of fixed charge receivers Lisney sold Clarendon House, a derelict building on Adelaide Street in Belfast with planning consent for hotel and office space. It is understood the new owners, who were happy to compete above the asking price, will seek planning approval to accommodate Grade A office space solely. In time this will provide an increased supply of much sought-after Grade A stock. This would be a very welcome change for Belfast city centre.<\/p>\n