Retail rents increase in half the region’s centres

Recent research by property advisers Colliers CRE reports that prime retail rents in Northern Ireland grew by 3.4% in the year to 31st May 2002.

According to Colliers CRE the increase is one of the fastest rates of growth in the UK outside southern England.

Belfast remains the focus of retail attention where lack of new retail development over the last ten years has driven up prime rents in Northern Ireland’s leading city to £250 per sq ft (psf) - an increase of 4.2% this year. Belfast’s rents are now greater than in Glasgow (£235 psf); Cambridge and Cardiff (£240 psf); and bring the city closer to the ranks of Liverpool (£265 psf); Leeds (£270 psf) and Manchester (£280 psf).

It is anticipated that the lack of development will change as a number of major new schemes have been proposed in recent years, and at least one of them is likely to be taken forward.

Jonathan Millar, Head of Retail at Colliers CRE’s Belfast office, said: “This record rent level has been illustrated with the recent deals to River Island, Next and WH Smith who have all agreed terms with Zone A rents of £250 psf. Belfast continues to be an attractive location and in addition to national occupiers, international companies are also now looking to take space. Zara are now trading in Donegall Place and the likes of Mango and Uniqlo also have outstanding requirements.”

In Coleraine, rents have remained solid at £85 psf following a period as one of the region’s highest growth rates in prime retail rents over the past decade (89%). This growth was due mainly to the lack of floorspace in the town. However, this will change later this year with the introduction of the Diamond shopping centre boasting the town’s first enclosed retail mall.

Ballymena has also experienced significant retail growth during the last decade. The introduction of two centres prior to this period supported rental growth of 77% over ten years to a current rental level of £85 psf.

Londonderry - about to get its first department store - sees rents stable at £100 psf.

Over the last decade the city has seen a rental growth of 67% and the opening of the Foyleside centre. The new Debenhams in the city (which is only the second store for this multiple in the province) is likely to attract more consumers to the centre and possibly increase cross-border shopping from neighbouring County Donegal.

(SP)