RETAIL rents in prime locations in Belfast city centre rose by about 20 per cent last year, according to a review of the retail property market in Northern Ireland by Osborne King & Megran.
The agency anticipates rents will continue to harden this year at a rate of around 10 per cent. Parts of Belfast city centre which may experience rental growth of 15 to 20 per cent include Castle Court, Castle Place, Donegall Arcade, Cornmarket and Ann Street.
Zone A rents are considerably higher than in either Grafton Street or Henry Street in Dublin. The agency says although Schuh Footwear is paying a zone A rent of £152 per square foot for a shop at Royal Avenue, it believed this rent would not be sustained and the true market level for this location was in the region of £120 per square foot. An even higher Zone A rent of £180 per square foot was obtained in Donegall Place, while £158 per square foot was recorded in Castle Lane.
Mr Colin Mathewson, of Osborne King & Megran, said there was a significant increase in interest in retailing in Belfast after the ceasefires were announced in the autumn of 1994. The agency had since concluded a large number of new lettings with retailers based in the UK and the Republic.
The review says suburban shopping centres in the grater Belfast area would continue to experience steady demand and rental growth, with the main interest being focused on the proposed Newtownbreda Shopping Centre on the Supermac site. The site was bought last year by Sainsburys and in addition to the three anchor tenants, the centre will also have 45 mall units. The development may have an adverse effect on the Connswater shopping centre.
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