THE main centres around the country Belfast, Cork, Limerick, Galway and Waterford, have started the year with a very active property market, the Sherry FitzGerald report has found. The majority of the activity has centred on the residential market where strong demand has led to significant house price increases.
The market for commercial property is more varied, with the retail sector outperforming both office and industrial property in all centres.
In Cork, considerable interest is being shown by retailers who wish to locate in Patrick Street the prime shopping area. Very few shops come on the market and the UK multiples are unable to find units large enough in this location, according to the report. Zone A rents are rising to between £80 and £90.
In Galway, the retail market continues to dominate the commercial sector. Zone A rents in the region of £60 per square foot are being achieved in Shop Street. "Although in its infancy, retail warehousing is proving popular with rents of up to £6 per square foot being achieved," the report says.
In Limerick, the designated retail development at Cruises Street is almost fully occupied. A large proportion of the space was taken by UK retailers. The report found that rents in O'Connell Street are between £40-£50 per square foot. Zone A rents in Cruises Street are at levels of up to £60 per square foot.
In Waterford, there is a "reasonable level of demand" for retail space in the city and the UK multiples are reported to be seeking suitable outlets. However, Zone A rents are approximately £30 per square foot.
In Belfast, the breakdown of the ceasefires has tempered the market, which rose last year, but it still remains strong, says the report. The return of shoppers to the city centre, combined with the tourism boom, has led to a very substantial appreciation in prime retail units. Zone A deals are reported at up to £180 per square foot.
There is strong activity in the office market and rents in prime accommodation are making £10 per square foot. "The performance of other sectors has overshadowed a static industrial market," says the report. In Belfast, prime industrial rents are in excess of £3 per square foot.
In Cork, there has been little growth in values in the industrial sector over the past few years. Rents vary between £2.50 and £3.50 per square foot. The office market remains quiet.
The market for offices in Galway is also relatively static and most of the new development has taken place in the designated areas. Rents are in excess of £8 per square foot for purpose-built developments.
In Limerick, the office and industrial property markets are quiet and there is little evidence of speculative development. Developments in designated areas have resulted in an oversupply in both sectors, according to the report. It says increases in rental values have been nominal in recent years.
Rents for designated offices average at £9 per square foot, while rents for small industrial units are fetching £3 to £5 per square foot.
