Today Savills estimate that over 300 jobs could be created in Belfast City Centre in the next 12-18 months due to soaring levels of interest in retail space from large international and national retailers.
Today Savills estimate that over 300 jobs could be created in Belfast City Centre in the next 12-18 months due to soaring levels of interest in retail space from large international and national retailers. This unprecedented rise in demand for retail space is reflected in a corresponding 15% rise in rents. Savills predicts that rents will continue to increase and this trend will persist as the impact of a reduction in general rates and a drop in available space will push rents on further in an upward trend.
The value of commercial property investment in Northern Ireland reached pre-economic crisis levels in 2014, according to a recent report from Savills. Retail investment accounted for an overwhelming majority, 88% (£440.27m) of the £500m worth of commercial property deals completed by the end of last year.
“Renewed consumer confidence and jobs growth is now beginning to be reflected in the retail property market. While rents remain well below peak levels and the supply of space exceeds demand, new entrants have started taking space in prime and secondary locations. With new arrivals across a variety of sectors, the broad-based nature of the recovery is encouraging” explains Paul Wilson, Director Retail at Savills Northern Ireland.
“We believe the increase in jobs and demand for retail space further positions Belfast as a key retail market for international brands. Over the next year we will see retail rents in Belfast rising, but still remaining on a competitive footing with other UK regions.”
Fashion & footwear and food & catering dominated take up of retail space in 2014, accounting for 61% of all deals in the year. Mango,Karen Millen, Jaegar, Lidl, Golf Nation, Joules and Swarovski either secured new sites or upsized within the City Centre.
“Savills was delighted to have been instrumental in bringing many international retail clients to Belfast, and assisting Michael Kors to open in Victoria Square was a major recent success for us’,” continued Mr Wilson.
A number of new entrants into the market; COS, Skechers, Aeropostale, Ed’s Diner, Patisserie Valerie, Five Guys and Ask/Zizzi are all currently seeking properties in Belfast, further cementing Belfast’s appeal and popularity, with Gap and Zara upsizing and DW Sports securing their flagship store in Belfast’s prime pitch Donegal Place.