BELFAST’S office market is expected to record is strongest year since the end of 2019, new analysis from Lambert Smith Hampton (LSH) suggests.
The commercial property consultancy said 309,500 sq ft of office space was taken up in the city during the first three quarters of 2024, surpassing the total for 2023 with a quarter still left to go.
It includes a record 86% of grade A office space.
LSH said the 140,096 sq ft of office space leased in the third quarter (Q3) was the highest quarterly total since Q4 2019.
However, the property firm said the Q3 activity was somewhat skewed by three serviced office deals accounting for 40% of take-up, in a quarter where 20 office deals were recorded in Belfast.
The latest data on the office market comes during a period of significant congestion in Belfast city centre, particularly during rush hour.
An increase in workers returning to the office in 2024 is thought to be among the multitude of contributing factors.
A senior official from the Department for Infrastructure (DfI) said on Monday that people should consider working from home one day per week to help ease congestion in Belfast.
Despite the perceived increase in people returning to the office, the LSH analysis outlines the profound change in the commercial property market post-pandemic.
The availability of office space continues to increase year-on-year, despite a collapse in new construction projects over the past two years, with many firms down-sizing their footprint in the hybrid era.
The largest deal of 2024 saw Lloyds Banking Group swap its 115,000 sq ft base in the Gasworks for 29,461 sq ft in the new Paper Exchange building.
Nine Lanyon Place (148,900 sq ft) and Clarence Court (146,967 sq ft) were also vacated in 2024.
LSH said following the completion of refurbishments at Pearl Assurance House and The Printworks, the development of new build or ‘back to frame’ refurbishments is now “almost non-existent”.
It said the one exception is Kainos’ 85,000 sq ft Bankmore Exchange scheme, due to be completed in 2026 with approximately 50% available to let.
“No further substantial developments are expected to commence in the next two years, providing opportunity for the market to adjust.”
Meanwhile, serviced office space continued to grow in the city during 2024, accounting for 83,858 sq ft of take-up to date.
New local entrants included Metro Office at the Metro Building (20,542 sq ft) and Pearl Assurance at One Donegall Square East (14,195 sq ft).
Formation Works also expanded its presence at The Kelvin (27,861 sq ft).
