Belfast office rents remain buoyant

Belfast office rental rates have remained relatively buoyant despite fluctuations in the market as a result of September 11, the Valuation and Lands Agency has revealed.

The agency, which is part of the Department of Finance and Personnel, released its latest property market report, which charts the highs and lows of the Belfast office market since the early 1990’s.

And in the report it has been revealed that the rent for Belfast office space reached an all-time high over the last two years – achieving rent as high as £167 per sq m. However, the international property market, and Northern Ireland, has suffered in the business downturn caused by September 11. Occupier demand in Belfast, particularly from the information, communication and technology sectors has dwindled with the result that headline rents have decreased to £135 per sq metre. Despite this the investment market has remained steady and the prospect for rental growth is considered to be good.

The total number of unoccupied units has increased by 75, but this say the agency is "not surprising considering the amount of refurbishment that are ongoing".

On the plus side, the report also indicates that in terms of occupational costs (rents, rates and service charges), Belfast remains ahead of other regional centres in the UK and Ireland. This is a positive sign that more inward investment can be attracted to the region, the agency said.

The current report, compiled in association with the University of Ulster and sponsored by Investment Belfast, analyses data on the changes in the market from April 2000 to September 2002.

The current agency list contains over 739,000 entries with a total net annual value of just over £1 billion.

The Agency delivers to more than 150 clients a wide range of professional valuation and advisory services involving more than 20,000 cases annually.

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