The high demand for grade-A office space in Belfast means developers need to take a risk and build speculatively to end “the tail wagging the dog”, leading industry experts have said.
Panellists at Estates Gazette’s Belfast Question time, held at the Merchant hotel on 15 October, said that tenants were driving rents, with the consequence that rents were failing to make the £18 per sq ft needed to encourage speculative development.
Suzanne Wylie, chief executive of Belfast city council, said that the delivery of grade-A offices was “ the number one priority” for the council in order to attract businesses and bring jobs into the city.
Belfast is also set to encourage more hotel and retail development, particularly in the centre of the city, which would combine with Ulster University’s commitment to new, more central site to create a more vibrant city.
Deloitte technology partner Danny McConnell said that research showed with the right level of infrastructure the city could become “huge” in the cyber, data and digital sectors.
However, all of the panellists agreed Belfast needed more development and finance initiatives to help boost rents.
Craig Logan, director in corporate banking and Bank of Ireland, said that his bank was willing to lend but was frustrated by a current lack of projects to get behind.
Political uncertainty in Northern Ireland was, however, creating a lack of confidence in investment and development, warned Anthony Best of Lacuna Developments, contributing to the lack of progress in rental incomes.
Neal Morrison, director at Savills Northern Ireland, completed the panel.
The debate was hosted in partnership with Bank of Ireland, Savills and CRS.
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