Belfast agents, who have been getting inquiries for up to 500,000 sq ft of new office accommodation, are anticipating another record year in the office market.
Several new developments are now under way encouraged by last year's record take-up of 600,000 sq ft of space.
The prospects for another record year have been prompted by the announcement that Japanese computer giant Fujitsu is seeking a major office letting as part of its £29.4 million sterling development in the North.
There has been strong speculation in Belfast that the company is in line to take the refurbished Head Line building in Victoria Street. The 13,500 sq ft building has had a complete rebuild inside, while its elegant Victorian sandstone exterior has been retained. The development is by the same group which was responsible for Dublin's Jervis Street shopping centre.
No rental levels have been revealed by agents Lambert Smith Hampton, but local sources say the letting has achieved strong rental levels.
Kieth Shiells of Lambert Smith Hampton reports that the Belfast office market is experiencing "unprecedented activity" with an improved supply following the best year on record for private sector lettings.
"Demand levels are encouraging with a number of good-sized requirements circulating at the moment. We estimate that there are live inquiries for approaching 500,000 sq ft of accommodation from genuine sources currently in the marketplace.
"There are a number of call centre and software development-led requirements, as well as others from the telecom sector."
The upsurge in the office market, after two decades of stagnation, has led to several new developments. Dunloe Ewart expects to be on site on six developments this year, according to director Barry Gilligan. An architectural competition is under way for Dunloe Ewart's landmark Number One Lanyon Place office building in front of the Waterfront Hall. The 60,000 sq ft building is likely to have a development cost of around £10 million. The same developers are well advanced on the 150,000 sq ft office building, 9 Lanyon Place. Dunloe Ewart also expects to begin development on the 23acre Sirocco site, on the east side of the Lagan, which it acquired last year. There is local speculation that the company is considering a major mixed development on the site along the lines of Dublin's Financial Services Centre.
Also on Laganside, developers Finbook Ltd, part of the group which developed the Jervis Centre in Dublin, has received detailed planning consent for the final phase of the Mays Meadow office development. The final phase of development on the site consists of a 130,000 sq ft office building overlooking the River Lagan with 100 on-site parking spaces. Agents Lambert Smith Hampton say there is already strong interest from a number of companies with significant space requirements in central Belfast.
The first office development on the Mays Meadows site, a 57,000 sq ft office building, is occupied by Abbey National and was sold last year for over £10 million. There is also a successful large public house, the Edge, and a fast-food outlet on the site.
Nevada Tele.Com has become the first major occupier at the Gasworks, taking 11,000 sq ft at a rent of about £11 per sq ft. The remaining 6,500 sq ft at the Gasworks is under offer, with a deal expected to be completed shortly.
Lambert Smith Hampton reports a "good level" of inquiries into McAleer & Rushe's speculative 150,000 sq ft Millennium House, which is being built at Great Victoria Street.
The largest current speculative office development in the city centre is under way at the Citylink Business Park, on the three-acre former Boxmore packaging factory site at Durham Street. Citylink will have a total of 250,000 sq ft of space in a number of configurations, including own-door units from 1,765 sq ft upwards.
In the Laganside area, Teesland Ireland Ltd is due to start work shortly on the 23,500 sq ft Floral Buildings, at East Bridge Street, close to the Waterfront Hall.
Construction is well advanced on the Metropolitan Building, in Alfred Street, near the City Hall. It contains 15,780 sq ft of accommodation on three floors and will be available for sale. The building is expected to attract strong attention from both investors and potential owner-occupiers.
Planning consent has just been received for a seven-storey, 53,000 sq ft office building at May Street just to the east of the City Hall. Another speculative start is underway at Weavers Court, just to the west of the city centre, with a 23,500 sq ft office building, including 50 parking spaces, by Limfield Properties Ltd.
Jago Brett, of Lambert Smith Hampton, said that "although new space is now coming on stream at unprecedented levels, this is much needed and the evidence strongly suggests that these new developments are attracting deals.
"Occupiers have had an extremely limited choice historically, due to the dearth of modern well specified accommodation.
"Belfast is playing catch-up in comparison with similar sized provincial cities, and with attractive rental levels and high quality new development on offer, prospects look encouraging for the future prosperity of the office sector."
