Quarter Of Belfast's Shops Vacant

Nearly 25% of Belfast’s shops are vacant, according to the latest research carried out by commercial property agency Lisney.

The research also shows that nearly 20% - one in five – shops throughout Northern Ireland are empty.

These figures show a dramatic increase in the number of vacant commercial properties throughout the province, with numbers in Coleraine and Newry hardest hit. Figures in those places have doubled since 2011.

These statistics show Northern Ireland is harder hit than the rest of the UK, where the average rate is roughly 11%.

In Lisney’s report, authors have blamed what they call an "unprecedented level of administrations" in the retail sector along with high business rates.

A lack of quality office space in Northern Ireland has also been blamed, as this is detrimental to the prospects for foreign direct investment from outside the UK. The report suggests the availability of office space is declining from an already low level, and that no plans for the development of Grade A office space are in the pipeline.

Lisney’s managing director, Declan Flynn said: "In retail, business rates remain a major issue. We have a situation where the level of business rates levied on shops is completely decoupled from the commercial realities of rents and the trading performance of the retailer.

"This is unsustainable and will continue to be a significant factor in administrations and rising vacancies, unless addressed."

The report does conclude that headline rents in Belfast currently stand very favourably when compared with those elsewhere in the UK. Rents are currently £12 per sq ft.

But Mr. Flynn remarked: "We still haven't seen a decision on a reduction in corporation tax. Designating Northern Ireland as an enterprise zone is another potential option to boost the economy and help make us more competitive.

"In the areas of GB in which enterprise zones exist, they provide a streamlined planning system, tax incentives and business rates relief.

"What is clear is that if nothing is done, the issues identified in this research will become even more acute, and Northern Ireland will continue to lose major potential occupiers to the Republic of Ireland other locations."

(IT)