Belfast offices snapshot

2016 had a post-recession record year for take-up with 63 transactions totalling 435,306 sq ft
Tech, media and telecoms sector was the most active in 2016 in terms of transactions and volume of take-up accounting for 14 of the 63 deals and 90,604 sq ft of the total take-up. New entrants to the market represented 24% of TMT take-up
Prime rents have increased by over 25% from £17 per sq ft to £21.50 per sq ft
Overall vacancy rate at year end was 7.4%, and grade A vacancy of 2.7%
There are nine office developments, comprising 618,000 sq ft, currently under construction or major refurbishment in Belfast, with 396,000 sq ft of this space already reserved
There are 20 developments that have received planning consent but are not on site, while up to an additional 18 are in the planning or pre-planning stages
The majority of this proposed development (73%) is focused in Belfast city centre and designated development zones in the Titanic Quarter and City Quays, reflecting Belfast City Council’s policy and focus on regenerating the city centre.

Despite the dramatic spike in rents over the course of 2016, supply will be the greatest challenge to the market in 2017
Overall take-up will eclipse 2016 due to a few significant prelets, but quantum of transactions will be less due to lack of quality supply in the more active size categories
Take-up will be dominated by the financial and government sectors due to impending lease events however TMT will continue to be the most active in terms of transactional numbers
Short-term flexible space and serviced offices will perform strongly
Prime rents for remaining grade-A stock and good-quality refurbished buildings will stabilise between £20-22 per sq ft
Speculative development will commence in city centre and refurbishments will pick up pace.