More office leases were signed in Belfast in the third quarter than in the first two combined as take-up is expected to reach a record high this year, according to Savills.
There were 19 transactions totalling 91,557 sq ft in the Northern Ireland capital in Q3, up from 14 in the first half of 2017. Total take-up for the year to date is 257,029 sq ft.
Demand strongly favoured prime offices with 84% of occupiers requiring grade-A space.
Savills said the city’s performance showed particular resilience considering fears over Brexit. Two-thirds of take-up was a result of occupiers’ expansion and 12% came from new entrants to the market.
Financial firm First Derivatives was responsible for the biggest deal of the quarter, agreeing to become the anchor tenant at the Weaving Works building, taking 25,034 sq ft.
Broadcaster UTV also took 11,564 sq ft at the City Quays 2 office development, while serviced offices firm Regus signed a lease for 7,447 sq ft at the Lincoln Building on Great Victoria St.
Simon McEvoy, divisional director at Savills Northern Ireland, said: “The occupier market in Belfast remains healthy post-Brexit, with office take up in 2016 35% ahead of the five-year average. 2017 is expected to set new records and exceed 2016’s take-up.
“Behind this there is also a very healthy 750,000 sq ft of demand, predominantly for grade-A offices, however with less than 200,000 sq ft of current grade-A availability, it is time to start the supply of new developments to meet this demand.”
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