The £200 sterling "Zone A" barrier in Belfast's prime retail area around Donegall Place has been broken with the acquisition of the former Next shop by Footlocker, the US sportswear group.
Other Belfast agents report major demand for prime city centre retail space. Kieth Shiells of Lambert Smith Hampton says that one major British department store chain is currently seeking 150,000 sq ft in the city centre and two southern chains are seeking a similar amount of department store space.
Zone A rents break through £200 barrier
The £200 sterling "Zone A" barrier in Belfast's prime retail area around Donegall Place has been broken with the acquisition of the former Next shop by Footlocker, the US sportswear group.
This latest boost in prime rentals - bringing Belfast to a level close to Dublin's top retail streets - has led retail agents to call for a move on the plans to build major new shopping space in the city centre.
The Department of the Environment in Belfast is currently considering recommendations from consultants on three schemes, which between them contain proposals for 1.8 million sq ft of mixed retail, leisure and residential space.
Hamilton Osborne King says the latest Zone A rental level shows that growth in demand for prime retail space remains unabated.
Footlocker is understood to have paid key money of £75,000 for the refurbished unit. The shop has 1,860 sq ft of ground and 1,750 sq ft of first floor retail space.
Colin Mathewson, of HOK in Belfast, reports that retail demand is such that rentals and premiums are likely to be pushed even further. "We have a number of prime opportunities coming on to the market at present and we expect to see strong premium levels." Mr Mathewson said it was hoped that recent political developments with the suspension of the Northern Assembly would not have a negative impact on the market.
The entire retail market is waiting expectantly for the results of the analysis by British consultants, Drivers Jonas, of proposals for three major shopping centres in Belfast city centre.
These include the 750,000 sq ft, £400 million joint proposal from Dunloe Ewart, John Lang Property and MEPC - under the title of Belfast Gateway - for an extension of the Castle Court Centre, together with a huge new mixed development complex on the other side of Royal Avenue.
The other proposals are for 560,000 sq ft of retail, hotel and apartments in the Victoria Square area and for a 500,000 sq ft mixed development in the Castle Street-Fountain Street area by the partnership of Land Securities and the Deramore Group.
"While it is hoped that recent political developments will not prove to have an overly negative impact upon what has been an increasingly buoyant property market, the suspension of the Assembly has obvious ramifications regarding key issues such as planning," says Mr Mathewson.
"Developers and property consultants are obviously anxious to have a decision from the Belfast Regeneration Office regarding the three major new retail schemes which have been proposed for the city centre.
"While selection of an appropriate scheme clearly signifies a major decision for the Department of the Environment's Regeneration Office, it must be taken as a matter of urgency if the city centre is to be developed to its optimum potential."
Other Belfast agents report major demand for prime city centre retail space. Kieth Shiells of Lambert Smith Hampton says that one major British department store chain is currently seeking 150,000 sq ft in the city centre and two southern chains are seeking a similar amount of department store space.
"Much of the demand has been precipitated by recent political developments, said Mr Shiells. "The ceasefires and the signing of the Good Friday Agreement have created a much greater awareness of the opportunities in Belfast and many retailers are keen to capitalise on the so-called `peace dividend'.
"Furthermore, the local economy is performing well, although the agricultural and textile manufacturing sectors are under extreme pressure."
He was critical of planners for being "too liberal" in allowing out-of-town retail developments around Belfast and pointed to last October's High Court decision overturning the DoE decision to allow a 250,000 sq ft retail centre at Sydenham, on the eastern outskirts of the city.
"That case throws into sharp focus the deficiencies in the planning system in Northern Ireland which has been criticised for lack of transparency and local accountability. The past few years has brought an unprecedented level of retail development activity, particularly on the out-of-town front, where the arrival of Tesco, Sainsburys and Safeway has stimulated much interest.
"A priority for any new administration in Northern Ireland will be to streamline the planning process and restore confidence in the whole system."
