Uncertainty over a second independence referendum coupled with Brexit has given some investors pause for thought north of the border, but the City Deals slated for Edinburgh, Glasgow and Aberdeen will be crucial in unlocking areas for growth.
GPU requirements in Edinburgh and Glasgow will boost office take-up in those cities in 2017, but a shortage in office space in both locations will create more upward pressure on rents. Work now going ahead on the major redevelopment of Edinburgh’s St James Centre could spur retail activity in predominantly prime locations, while secondary areas may face challenges.
In Northern Ireland, development is needed to inject much-needed office stock to attract occupiers. The completion and letting of Belfast Harbour’s City Quay development and decisions regarding the GPU requirement, while a vote of confidence in the market, do little to alleviate supply shortages. However, the start of McAleer and Rushe’s Bedford Square scheme and Kilmona’s East Bridge site are also expected, which will add to the development pipeline.
Ongoing work by Belfast Harbour and in Titanic Quarter should open doors for new retail and leisure occupiers and further university expansion is expected to drive the student housing sector.
• For a full round-up of the year to come in the regions, click here
