Leading commercial property agent CBRE NI has reported a subdued third quarter for the Northern Ireland commercial property market, while predicting a strong end to 2025.   

The latest commercial real estate investment figures, published in CBRE NI’s Q3 2025 Commercial Property Market Report, reveal that total transaction volumes reached just under £8 million during the last three months. While a modest figure compared to the year-to-date investment, which now stands at £158 million, it is an improvement on the £4.2 million recorded during the same period last year.

So far this year, retail assets have accounted for 61% of total investment spend, followed by industrial at 18%. Domestic investors have continued to dominate the market, contributing 74% of total transaction volumes, with private equity accounting for 15%.

Brian Lavery, Managing Director of CBRE NI, commented:

“Keeping with the muted, yet stable, performance recorded throughout the year, Northern Ireland’s commercial property
market experienced a very quiet third quarter. While summer activity was subdued, this period of consolidation follows an active first half of the year and reflects a market that remains resilient but unexciting.

“Investor sentiment is still cautious, but we are hopeful that a busier final quarter will result in a return to stronger activity levels. Total investment during Q3 reached just under £8 million – a modest figure compared to the year-to-date investment which now stands at £158 million. This has already surpassed 2024’s full-year total and reinforces the market’s ability to perform despite ongoing macroeconomic challenges. Domestic investors continue to play a defining role, accounting for 74% of total investment to date, supported by private equity at 15%. Pricing and yields have remained steady, suggesting that while investors are selective, confidence in the long-term fundamentals of Northern Ireland’s market endures.

“The retail sector remains the best performer, representing 61% of total spend so far this year. Demand for prime city centre locations continues, bolstered by high-profile openings and relocations at Victoria Square, including Bershka, Astrid & Miyu, and Space NK. This is bolstered to some extent by local investors spending and improving the shopping centres they have purchased over the last few years. The retail warehouse segment also continues to display robustness, with occupiers such as B&M, Food Warehouse, and M&S expandin their presence across key regional parks. This sustained activity highlights the sector’s adaptability and the resilience of consumer demand with some signs of a return to better footfall figures.

“Office market activity was very restrained, with take-up of 26,597 sq ft across eight transactions during Q3. Although volumes were lower than a year ago, prime rents remain stable at £25.50 per sq ft, with upward pressure expected as high-quality supply continues to tighten. Several large active requirements and forthcoming lease events could generate up to one million sq ft of transactions over the next 12–18 months, signalling potential for renewed momentum heading into 2026.

“The hotels sector continued to perform strongly, buoyed by record summer trading and sustained investor confidence. The Open Championship at Royal Portrush delivered a significant uplift in July, achieving record average daily rates across the region. Development activity also remains healthy, with the opening of the 179-bedroom Moxy Belfast, planning approval for Yotel Belfast, and new aparthotel proposals all reinforcing confidence in Northern Ireland’s hospitality market.

“Overall, there was a definite slowdown in Q3, which is not unusual in the summer months. Underlying strength in the retail and hotel sectors, stable office fundamentals, and a growing investment pipeline all point to a stronger end to 2025. The hope is that inflationary pressures ease and interest rate sentiment improves. That would at least, along with renewed office take up, give some momentum into 2026.”