24 January 2020 News
Global investors in commercial property in Northern Ireland achieve one of the best rates of return compared to all other cities in the UK and Ireland, attendees at CBRE’s Outlook 2020 event heard today.
Kevin McCauley, Head of UK Commercial Research at the global real estate advisor, said Belfast makes sound commercial investment sense, particularly given the less volatile political environment following the return of the Stormont Executive and the increasing confidence that the EU-UK withdrawal deal will be approved.
Speaking at the event in Belfast’s International Conference Centre attended by 500 commercial property professionals, he pegged prime yields for high street shops here at 6.75%, markedly higher than the 5.25% UK average and the 3.5% in the Republic. Offices in Northern Ireland achieve prime yields of 5.75% compared to 4% for the UK city average and 4% in Dublin.
“A more benign political environment means commercial property investment across the UK has a positive future in the year ahead, particularly in Northern Ireland where the progress at Stormont bodes well for the economy as a whole. We expect more overseas and institutional investment in the year ahead across all asset classes.”
That sentiment was echoed by Spencer Levy, CBRE’s Chairman of Americas Research for CBRE and Senior Economic Advisor, who said a steadier political environment offers a more positive investment outlook in the UK. Mr Levy offered an insight into the US and global commercial property market.
Also speaking at the event was Carl Brookes, Head of Sustainability at CBRE UK Property Management, who underpinned the importance of factoring environmental issues and climate change into the future of commercial property.
Brian Lavery, Managing Director of CBRE Northern Ireland, said sustainability is key to the market in future years: “At CBRE we are firmly focused on building this key issue into all our conversations with clients and key stakeholders, as well as within our own organisation.”
Kevin McCauley, Head of UK Commercial Research at CBRE