Investors attracted by NI commercial property prime yields

By Neil Logan

A new report from real estate firm CBRE shows that Northern Ireland commercial property prime yields are currently the higher than Great Britain and the Republic of Ireland

Prime yields are calculated by dividing the annual rent of the property by its value. High street shops in Northern Ireland have prime yields of 5.75 per cent, compared to 4 per cent in Great Britain and 3.15 per cent in the Republic of Ireland. Similarly, prime yields are high for shopping centres, retail warehouses and industrials.

The CBRE director of the UK office and Industrial Research, Andrew Marston, says the prime yields of commercial property in Northern Ireland has helped draw overseas property investment. He cited the purchase of Castlecourt in Belfast for £123million as an example, which was purchased by Wirefox with the support of funding from China. Mr Marston expects prime yields to be impacted by rising interest rates in the US, but says that "Northern Ireland yields have plenty of cushion".

If you require legal advice from a commercial property solicitor in Northern Ireland contact Wilson Nesbitt in Belfast by clicking here.