2024 has gotten off to a relatively promising start, and the outlook for the rest of the year remains positive starting from a low base. Several deals agreed in Q2 failed to complete in time for the quarter end which should boost the take up figure in Q3. The number of enquiries remains stable and with some major lease renewals forthcoming could point to increased activity over the next 12 months.

Reported take up figures signal an encouraging start to the year, and given the number of requirements currently in circulation, it is hoped this momentum continues into the second half of the year.

At present it is estimated that there are currently in excess of 300,000 sq ft of live requirements plus a number of major upcoming lease events which will push this figure higher. Whilst the demand appears robust with enquiries and viewings strong, slow decision-making is impacting the actual level of deals completed.

There was 1,051,033 sq ft of accommodation available at the end of H1 2024. This is a drop of 15% on the level of supply at the end of H2 2023. The main contributing factor for this substantial decrease is accounted by secondary office buildings now being ear-marked for alternative uses. We expect that over the medium to long term more secondary office buildings will be redeveloped for alternative uses which will further reduce office supply within the Belfast market.

Prime headline rents, at the end of H1 2024, for best-in-class Grade A stood at £25.50 per sq ft per sq ft. Average rents for refurbished properties have been in the region of £18.00 to £22.00 per sq ft. As the quality supply diminishes, we expect to see Grade A rents increase and incentive packages hardening.

During H1 2024, the investment market has been subdued, with just over £83.5 million transacted, compared to £161 million which was transacted over the same period in 2023, reflecting a decrease in spend of 48%.

Although investment volumes are likely to be lower, we do expect a continuing improvement in investor sentiment for the remainder of the year which should lead to increased activity, with cash buyers being the first movers.