Commercial property is braced for a boom

Northern Ireland’s commercial property market is about to see a surge in investment, agents CBRE predicted yesterday. The firm said a backlog of deals amounting to £220million are currently “in legals” and due for completion in the next four-to-six weeks. They include the £125million sale of Castlecourt Shopping Centre and search by HMRC for 100,000 square feet of office space in central Belfast. The expected spike follows a relatively subdued second quarter of the year when just £18million was invested in the commercial property market here across seven separate transactions, a slowdown blamed on the General Election. CBRE said the launch of a fund by Belfast City Council to stimulate office development, a tender for a £100m investment fund and the £1billion deal between the DUP and Conservative party will also underpin the sector. Spokesman Gavin Elliott said: “We believe that Q3 will deliver a high level of investment given the closure of a number of shopping and retail schemes due to complete in the coming weeks. “Whilst the TORY/DUP deal should be positive for the property sector, it is imperative that we have a stable local government in place, to deliver confidence to a global investment market.” CBRE said the office lettings market is performing strongly as local companies expand to larger premises and more investors announce their arrival. The refurbishment of existing office space has been responsible for much of the office signings – such as River House on High Street in Belfast and Longbridge House on Waring Street in the city – but a lack of new developments means future supply remains restricted. In the retail sector, rental levels are said to be climbing as a result of falling vacancy levels with a number of new tenants signed up.