Real Estate Market Outlook 2018 Expected Trends 2018 Expected Trends

2018 NORTHERN IRELAND REAL ESTATE MARKET OUTLOOK 2018 EXPECTED TRENDS 2018 EXPECTED TRENDS

WELCOME TO THE CBRE NORTHERN IRELAND OUTLOOK FOR 2018

In early 2017 we predicted that the year In addition, the launch of the £100 million Northern Ireland ahead would be filled with political Investment Fund, targeted at stimulating development uncertainties at home and abroad. As throughout Northern Ireland and the new Belfast City Centre we look forward into 2018, not a lot has Investment Fund, targeted at stimulating further Grade A office changed. A continued lack of a stable development in the city centre will provide welcome forms of government at Stormont and Brexit additional funding to the property sector. This additional uncertainties have had a negative funding should serve to re-fuel demand for real estate across impact on the local economy and Northern Ireland. should our local government stalemate persist, we expect this sentiment will feed into both the Our recently published 2018 UK CBRE Market Outlook commercial and residential property markets during 2018. highlighted many key themes, summarised on pages 4 & 5, all relevant in a Northern Ireland context. Having said that, the commercial property market in 2017 proved to be one of the more resilient sectors, with investment We also believe the unique position of Belfast as a pivotal city volumes at £316 million, 30% higher than 2016. The office between Dublin, London and Europe should begin to realise sector performed well with a number of key transactions greater interest from real estate investment funds. Hopefully, underpinning rents at £20.00 per sq ft and a positive outlook for increased clarity around the border and as Brexit moves into the further growth predicted for 2018. next phase of negotiations, the region’s position should be increasingly positive. We have witnessed cranes on the Belfast skyline, with several new builds in the hotel and student housing sectors. The office Looking forward into 2018, the continued future growth of the sector saw new stock being delivered at City Quays 2. City centre commercial property market is, however, heavily reliant on a development in the office sector has, to date, been fully functional local government being put in place so that predominantly refurbishment of existing buildings. Northern Ireland can take advantage of its unique position in relation to Brexit. Our local property market should be well placed for future investment once the additional £1 billion funding for Northern Brian Lavery, Managing Director, Belfast Ireland, secured as part of the Conservative/DUP deal, is released.

2 3 2018 EXPECTED TRENDS 2018 EXPECTED TRENDS

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Economic Outlook Investment Outlook Industrial & Logistics Outlook

The Northern Ireland commercial property market Rebounding strongly from the uncertainty in the immediate Industrial and logistics property put in a star performance in 2017, continues to be resilient, however the continued lack of a aftermath of the referendum, the UK investment market has underpinned by very strong demand and extensive supply constraints. stable Government at Stormont has already had a negative seen a surge in transaction volumes. Total returns have been These factors seem likely to continue into 2018. New transport technologies impact on the local economy and should the stalemate similarly buoyant, powered by a thriving industrial sector. will continue to gain credibility, though it may be tricky to work out which persist, we expect this sentiment will feed into both the Although we forecast a weaker economic outlook, we expect technologies will be so widely adopted as to be labelled ‘transformational’. commercial and residential property markets. The Bank of that solid income-driven performance over the medium Change in the retail sector will continue to affect industrial and logistics England has increased interest rates by 25 bps and there is term, combined with strong demand for property exposure property. These structural factors have overwhelmed Brexit as an influence on still little clarity on the broader Brexit issues affecting on both the debt and equity side, will ensure investment the sector so far, and 2018 will begin to offer more certainty once EU trade the province. volumes remain robust. We anticipate Northern Ireland will talks get underway. Contrary to other regions Northern Ireland’s industrial experience similar investment volumes for 2018. and logistics sector continues to be dominated by owner occupiers with very limited speculative development.

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Retail Outlook Offices Outlook Hotels Outlook Specialist Markets Outlook

A slowdown in consumer spending will make 2018 a tough The outlook for UK office markets in 2018 can be Hotels performed well in 2017 and we expect this to Investment in UK healthcare real estate continues to grow year for retailers and leisure operators. The weaker pound characterised as challenging. Our prognosis reflects the continue into 2018. Referendum-induced currency and strongly. Prime elderly care remains the focus for investors, will provide some comfort for internationally-oriented fortunes of the UK economy which is slowing and inflation effects have been both a benefit and burden for but breakthroughs in retirement living in 2017 suggest retailers, but rents are unlikely to grow. Significant amounts continues to feel the effects of Brexit-related uncertainty. hotels, and the sector’s dependence on EU workers remains growth in this sector in 2018. of new, high-quality shopping centre space will open and Rental growth will vary across the country, with stable or a concern. Available rooms will grow at double the some prominent mergers will continue the convenience small increases in the large regional markets, but small long-term average rate in 2018. Investment levels will retail revolution. Customers and retailers will further declines in parts of Central London. Low levels of remain robust, though there will be a shortage of stock exploit new technologies, with the physical store availability and relatively strong demand for the best Grade available in London. 2018 will see the opening of several continuing to redefine its role. In Northern Ireland, the A space will moderate any rental falls. Investment volumes new hotels in Belfast including the Maldron on Brunswick retail sector has continued to perform well with the will be resilient. Northern Ireland continues to attract FDI Street, the Grand Central on Bedford Street and the AC advantage of the current exchange rate and cross-border occupiers and the continued lack of supply should result in Marriott Hotel at City Quays. trade. The retail market saw a plethora of new entrants in further office rental growth. 2017 as well as increased footprints by a number of relatively new retailers including Smiggle, Oliver Bonas, Hotel Chocolat, Søstrene Grene and Newbridge Silverware.

4 5 ECONOMIC OUTLOOK ECONOMIC OUTLOOK

It would be fair to say, despite an unprecedented year in politics, both in the UK and Our UK economic forecast therefore assumes another three the largest negative impact on their confidence levels, not the Ireland, the economies of both countries have performed well ahead of expectations. years of subdued growth followed by a strong bounce back once erosive impact of inflation. And whilst agreement was reached the Brexit-related uncertainties are resolved, bolstered by on Brexit border issues at the end of 2017, the detail remains a This is particularly true for the UK, where the uncertainties of Brexit have cast a large stronger global economic growth. For Northern Ireland, some long way from being set in stone. shadow. In 2018, it will be crunch time for Brexit, and with it the UK economy faces of the weaknesses associated with consumer confidences will significant challenges in the form of full employment, higher inflation and lower be offset by the benefits of cross-border retail sales, driven by More widely, the level of ambiguity around the UK’s future consumer spending. the Euro/Sterling exchange rate. In addition, Northern Ireland relationship with Europe should diminish as the year continues to attract tourists, with record numbers visiting in progresses. However, Brexit-related uncertainty will be an issue 2017, driving demand for hotel beds in Belfast and beyond. So for UK property for the next three years. The global economic environment looks UK growth turned out to be rather more robust than had been whilst the Northern Ireland economy will mirror the period of benign in 2018. Unforeseen shocks forecast immediately after the EU referendum result and UK weaker growth expected for the UK as a whole, growth will be Having cut its Bank rate in 2016 after the referendum result, the aside, the next major international property returns were more positive than anticipated in 2017. supported by the consumer and tourism sectors. Bank of England increased the rate back to 0.5% at its headwind for the UK will be the cyclical But more recently the UK has lagged European growth, with UK November 2017 meeting. CBRE thinks this was a one-off downturn expected to originate in the GDP growth slowing from 1.8% in 2016 to an anticipated 1.5% However, challenges remain. There has been the no functioning movement to bring the Bank rate back to the pre-referendum US in late 2019 to 2020. Short-term in 2017. Brexit-related uncertainty has clipped growth and the executive at Stormont, thereby creating a political vacuum. Data level. That cut had been made to stave off a recession and, as interest rates have increased four times fall in the pound has hit real spending power. Nominal wage from Danske Bank’s Consumer Confidence Survey 2017 Q3 this didn’t occur, its reversal was always on the cards. However, in the US since the end of 2015 with growth is currently around 2% with inflation running at just showed that 36% of consumers saw the political uncertainty as we think that long-term interest rates will be driven mostly by more increases to come. The US over 3%. While early 2018 will be tough for households, they international factors rather than domestic policy. International monetary policy normalisation process, and the unwinding of should see Consumer Price Inflation (CPI) diminishing to 1.6% long-term interest rates are highly correlated, so the increased quantitative easing, look likely to eventually curtail growth as it by the end of 2018 and with it a small improvement in ”For Northern Ireland, some of the US long-term interest rates which we expect will feed through to overshoots in its effort to prevent overheating. wage growth. weaknesses associated with consumer higher rates in the UK. This looks likely to raise real estate confidences will be offset by the benefits yields, principally those in Central London, with yields in the rest of the UK relatively flat over the year. of cross-border retail sales, driven by the Euro/Sterling exchange rate” Andrew Marston, Director, UK Research, Figure 1: GDP Growth: Weakness ahead National Offices and Industrials

UK Northern Ireland 3.5

3.0

2.5

2.0

1.5

Annual GDP Growth (%) 1.0

0.5

0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Oxford Economics, CBRE Research

6 7 INVESTMENT OUTLOOK INVESTMENT OUTLOOK

The Northern Ireland commercial property market continues to be resilient, however the continued lack of a stable Government at Stormont has already had a negative impact on the local economy and should the stalemate persist, we expect this sentiment will feed into both the commercial and residential property markets. The Bank of England has increased interest rates by 25 bps and there is still little clarity on the broader Brexit issues affecting the province.

However, on a more positive note and as predicted last year, the recent agreement between the Conservatives and the investment market over 2017 has seen an increase in Democratic Unionist Party (DUP), which secured an CastleCourt Shopping Centre, Belfast transaction volumes from 2016. According to our research, additional £1bn in funding for Northern Ireland over the a total of £316m was invested in 43 separate investment next two years, a significant amount of which will be spent on transactions in Northern Ireland during the year. Key infrastructure projects. Figure 3: Prime yields at the start of 2018 transactions include the sale of CastleCourt Shopping Centre Northern Ireland United Kingdom to Wirefox for £123m; Tesco Extra, Newry sold to Investec for The investment market has been offering both value add and £27.25m; and Great Northern Retail Park, Omagh for £9.175m. core opportunities which has seen healthy interest from a High Street Shops 5.75% 4.00%

broad spectrum of investors including; Private Equity, Shopping Centres 7.25% 4.50% We are anticipating the majority of transactions during 2018 Property Companies, High Net Worth Individuals and will continue to emanate from financial restructuring and Institutional Investors. However, with further anticipated Retail Warehouses (Bulky) 7.50% 5.50% investors crystallising profit following the completion of asset political and economic uncertainties primarily due to Brexit, 3.75% West End management strategies. In addition, the property market we envisage that investment strategies will continue to be Offices 6.00% 4.00% City 5.00% Regions should be well placed for further future investment following focused on core income driven by a reduction in appetite for risk over the short term. 4.35% London Industrials (Estate) 8.50% 4.65% Rest of UK

Figure 2: Northern Ireland CRE Investment 2010-17

Offices Retail Industrial Leisure Other The debt market has continued to improve with more lenders We expect that yields across all sectors in Northern Ireland will 600 currently active in the market since the last peak in 2007. The remain relatively stable over the next 12 months. Northern launch of the Council-led Belfast City Centre Investment Fund, Ireland Investor activity over the short to medium term will be 500 specifically targeted at stimulating further Grade A office driven by the low cost of debt, investment yield arbitrage development in the city centre, plus the £100m Northern compared to other UK regions, currency effects and a stable 400 Ireland Investment Fund will provide welcome forms of underlying occupational market. additional funding to the property sector throughout 2018. 300

Millions (£) Furthermore, the £1bn Belfast City Region Deal will offer new Continued political uncertainty will result in investors focusing 200 possibilities to re-fuel demand for real estate across on core income and strong investment fundamentals, however Northern Ireland. Northern Ireland at present does offer a unique investment 100 opportunity whose success will be dependent on a fully functioning local government being in place. 0 2010 2011 2012 2013 2014 2015 2016 2017

Source: CBRE

8 9 RETAIL OUTLOOK RETAIL OUTLOOK

The retail sector continued to experience increased activity in 2017, mainly focused on Crescent Link, Derry/Londonderry. Activity in the food sector is ”The out of town retail market remains key centres such as Belfast, Derry/Londonderry, Newry, Bangor and Newtownabbey. primarily limited to Lidl, who continue to open new format buoyant with very limited vacancy” stores on a rolling programme. M&S Simply Food also opened It is not a perfect market but is in the main part positive, with head winds of increased their first forecourt store in Northern Ireland close to Belfast inflation and reduced consumer confidence as a result of political uncertainty being International Airport. There is limited new development anticipated in 2018, with the off-set to some extent by the benefits of weaker sterling and increased euro and exception of Marlborough Retail Park, Craigavon. The out of visitor spend. Food and beverage continues to be an active sector with all the town sector could face some challenges following the result of main coffee brands acquiring multiple locations during 2017 the Toys R Us CVA. We anticipate that the focus of activity will and although the casual dining market has slowed, key remain in the key locations previously identified, with greater This positive activity has resulted in vacancy rates in prime Newtownabbey completed relocations with Primark and New operators continue to seek suitable opportunities with much of Belfast, Derry/Londonderry and Newry experiencing the locations decreasing considerably while secondary locations Look, at Connswater The Range, Lidl and Home Bargains the activity centered in Belfast. highest level of activity. continue to find the market challenging. Increased activity and opened new stores and in Lisburn TK Maxx, Pure Gym and limited availability within prime locations is beginning to Ground have taken units at Laganbank Retail Park. 2018 appears to present similar challenges and we do not It is expected that Canadian operator Tim Horton will deliver some upward rental pressure. anticipate any significant divergence from that of recent years. launchn i Northern Ireland in early 2018 with their first store As in recent previous years there has been limited new Increased political uncertainty locally will only continue to at Wellington Place, Belfast and this sector should remain Key activity during the year included lettings in Belfast city development with Phase Five at The Quays, Newry, and undermine consumer confidence but to counter balance this it active with all of the main coffee operators seeking an centre to Smiggle, Hotel Chocolat Café, Oliver Bonas and Westwood and Laganbank retail parks being the exceptions. is expected that inflation will ease as we go into the year with increased presence. Newbridge Silverware. Westwood Retail Park secured lettings to sterling remaining weak. Harry Corry, Jollyes, Air-tastic and Ulster Bank whilst The Quays, The out of town retail market remains buoyant with very Newry secured Marks & Spencer, New Look, Smiggle, The Body limited vacancy, notable lettings during the year included; Shop, Søstrene Grene and Pure Gym. Abbey Centre, EZ Living at Holywood Exchange and Oak Furnitureland at

Laganbank Retail Park, Lisburn The Range, Connswater Shopping Centre, Belfast

10 11 OFFICES OUTLOOK OFFICES OUTLOOK

The first half of 2017 got off to a relatively slow start with only 14 transactions recorded in the first six months which equated to take-up of 165,472 sq ft, however these low volumes did not paint an accurate picture of the activity in the office market.

The second half of the year was considerably stronger with 33 Refurbished properties such as Linen Loft, Flax House, transactions completed bring total take-up for the full year to The Weaving Works and Lincoln Building have delivered much 430,290 sq ft. The five year annual rolling average equates to needed stock into the market and the completion of River 385,034 sq ft. House in Q2 2018 will provide a further boost to supply and choice in the market. Significant projects for 2018 include the Interest in the market remains healthy and take-up in the 212,000 sq ft Merchant Square building on Wellington Place second half of the year supports this view. Take-up in the last six with delivery expected in Q1 2019 and Chichester House, Linen Loft, Adelaide Street, Belfast months emanated from a wide range of FDI companies taking 46,000 sq ft. new space and local companies relocating into larger space due to growth in their respective businesses. A number of other schemes have planning permission in the city centre although in the absence of a major pre-let many are Notable deals completed in 2017 include HMRC at Erskine unlikely to start in 2018. House; HCL at Millennium House; Grant Thornton at Donegall Square West; First Derivatives at The Weaving Works; Deloitte at McAleer & Rushe and Belfast City Council are expected to bring

Lincoln Building and TP iCAP, Wireless Group and ITV at forward a planning application for the former Belfast Telegraph Merchant Square, Wellington Place, Belfast City Quays 2, Belfast City Quays 2. Headline rents for best in class buildings have building on Royal Avenue. It is expected that the site could reflected £20.00 per sq ft to £21.50 per sq ft. We anticipate rents provide up to 300,000 sq ft of commercial space adjacent to increasing during 2018 to £22.00 per sq ft headline. Ulster University. Figure 5: UK Regional Office Take-up 2017

Total Take-up (millions sq ft) % difference from five year average Figure 4: Belfast Office Take-up Manchester 8% 265,679 273,624 401,484 348,548 309,543 435,306 430,290 200 Edinburgh 39% 180 Birmingham 51% 160 140 Leeds 75% 120 Glasgow 7% 100 80 Bristol -2% Square feet (000’s) 60 Belfast 22% 40 20 Liverpool 7%

0 0.00 0.25 0.50 0.75 1.00 1.25 -25% 0% 25% 50% 75% 100% 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Source: CBRE Source: CBRE

12 13 INDUSTRIAL & LOGISTICS OUTLOOK INDUSTRIAL & LOGISTICS OUTLOOK

2017 has seen a number of lettings agreed for new design and build options. These schemes have been marketed for the past few years, however they are now becoming a viable option for many tenants to suit their growing needs. Deals agreed this year for design and build include sites at Mallusk and Nutts Corner, with rents in the region of £7 per sq ft. This may lead to more Design and Build options coming available as tenant demand increases.

Rent for existing stock remains around £4.00/£4.50 per sq ft A number of large spaces will become vacant in 2018 as depending on quality and location. Vacancy levels in industrial Michelin and Caterpillar prepare to close their respective parks have continued to decrease with a number of smaller Ballymena and Newtownabbey sites. This will deliver c. schemes now fully let or close to being fully let. Rentals for 1,000,000 sq ft of industrial space to the market. Design and Build led schemes are typically much higher than rentals for existing stock reflecting increased construction Notable deals in 2017 include c.10,000 sq ft letting to Screwfix at costs and specific tenant fit-out requirements. Duncure Industrial Estate and the sale of the former Lisburn Glass factory, Lisburn. In addition, the Coca Cola facility in There has been continued demand for freehold opportunities Lambeg, Lisburn sold for £3m and TR Logistics acquired 95,000 from owner occupiers, with units released to the market selling sq ft at Shore Commericial Park, Carrickfergus. We estimate quickly, for prices in excess of asking. total 2017 transactions to be in excess of 1.5m sq ft.

Michelin, Ballymena

14 15 HOTELS OUTLOOK HOTELS OUTLOOK

During 2017, the number of hotel transactions in Northern Ireland was limited with only six hotels with a total value in the region of £42m transacted (based on certain assumptions made on the apportionment of the Jurys Inn portfolio acquisition by Pandox).

There are a number of transactions agreed with completion • 304-bed Grand Central Hotel, conversion of the former dates proposed for the first quarter of 2018. We are therefore Windsor House building on Bedford Street; expecting greater transactional activity in this sector in 2018 • 237-bed Maldron Hotel on Brunswick Street / from hotel investors and operators alike. Blackstaff Square; • 190-bed AC Marriott Hotel at City Quays; Hotel bedroom stock in Belfast increased during 2017 to • 178-bed Hampton by Hilton Hotel at Hope Street; approximately 3,600 bedrooms following the opening of the • 60-bed extension of Holiday Inn Express on Titanic Hotel in September (119 bedrooms), the Bullitt Hotel University Street; extension in November (31 bedrooms) and part of the Ten • Remaining 33-bed extension of Ten Square Hotel Square extension throughout the year (57 bedrooms). on Donegall Square South.

At present there are approximately 1,000 bedrooms under Furthermore, an 80-bed extension to Jurys Inn and the new construction and we expect the majority of these to open by 17-bed boutique hotel at Bank Square both went on site in Q3 2018. These include: December 2017 and are earmarked for completion during 2019.

Titanic Hotel, Belfast

Figure 6: Passenger flow at NI Airports This new supply equates to approximately 30% of the existing This includes six proposed new hotels/extensions totalling stock and it is likely there will be a period of trading 424 bedrooms. Belfast City Belfast International City of Derry stabilisation within the Belfast hotel market once these new 9 rooms come on stream. During 2017, Belfast proved to be a very popular European city 8 destination with world class attractions. It benefited from a 7 In Belfast, the Liverpool based hotel brand Signature Living favourable exchange rate which was a factor in tourism figures purchased the Scottish Mutual Building, War Memorial achieving record levels. As a direct result, Belfast was one of the 6 Building, Waring Street and Crumlin Road Courthouse. best performing markets in the UK with significant ADR and 5 It has been reported that they will invest between £80m and RevPAR growth. 4 £110m converting these three properties into hotels totalling 268 bedrooms. According to STR Global’s YTD November 2017 statistics, Hotel 3

Number of Passengers (000’s) Number of Passengers Key Performance Indicators in Belfast showed year-on-year 2 We are also seeing increased planning activity outside Belfast, improvements. Occupancy increased to 82.6% from 80.1% 1 albeit with limited new hotels and extensions actually under during the same period in 2016. Average Daily Rate (ADR) 0 construction. In preparation for Royal Portrush Golf Club experienced significant growth from £69.92 in 2016 to £79.82 in 2010 2011 2012 2013 2014 2015 2016 2017 hosting the Open Championship in 2019, there has been a 2017, an increase of 14.2%. This resulted in Belfast achieving Jul 16 - Jun 17 flurry of proposed development activity along the north coast. record RevPAR of £65.89, 17.6% ahead of 2016 and growth of Source: Northern Ireland Statistics & Research Agency 87% since 2011.

16 17 Figure 5: UK Regional Office Take-up 2017 SPECIALIST MARKETS OUTLOOK SPECIALIST MARKETS OUTLOOK

STUDENT ACCOMMODATION Belfast Student Market HEALTHCARE Locally we will see further development in this sector to include The student accommodation sector has been particularly active • Belfast is home to five higher education institutions and has With higher life expectancies and improved technology the Kings Hall Heath & Wellbeing Park to be developed by in 2017 with a number of new schemes starting on site. a total of 21,457 full time students; enabling health care needs to be more manageable, the range Benmore/Octopus Healthcare Developments. We anticipate Completions have included John Bell House, operated by Fresh • 34% of students studying in Belfast live in other rented of extra care housing options is expanding to include Care at planning for this scheme progressing in 2018. The largest local Student Living; Mark Royal House, Cathedral Living; and accommodation compared to the UK average of 30.74%; Home, Sheltered Housing, Retirement Communities, Assisted sale of 2017 comprised three nursing homes let to Priory Botanic Studios, Universal Student Living providing a further • 9.68% of students studying in Belfast live in purpose built Living, Care Homes and Nursing Homes. While the retirement Investment Holdings sold to LXI Reit for a combined price of 614 student beds in Belfast city centre. A further c.2,000 rooms accommodation (PBSA) compared to the UK average market and community in the UK lags behind other mature £14.875m reflecting 4.02%. are expected for delivery in 2018 following completion of of 26.53%. countries such as US, Australia and New Zealand we are schemes by McAleer & Rushe for Queen’s University, Lacuna/ witnessing further developments within this sector. Challenges remain within this sector with Four Seasons Source: CBRE Research Watkins Jones and Olympian Homes. recently securing a reprieve on a major debt repayment which Continued institutional demand is driving development activity threatened the future of the firm. Four Seasons, which employs CBRE Research indicates a further 3,322 rooms are proposed throughout the regions. Legal & General’s recent acquisition of more than 25,000 people, said it aims to agree a restructuring for future delivery. The next phase of delivery of the city centre Helical’s portfolio of retirement villages totaling £102m plan in Q1 2018. Ulster University campus has been delayed resulting in a demonstrates this demand. phased occupation during 2019/20, with full occupation programmed for September 2020. This will no doubt impact on some developer-led schemes which would have been anticipating full student capacity from September 2019.

College Square, Belfast

18 19 OUR TEAM OUR TEAM MANAGING DIRECTOR AGENCY ASSET SERVICES RETAIL

BRIAN LAVERY DAVID WRIGHT LISA MCATEER COLIN MATHEWSON ALANA COYLE PAULA MCKNIGHT GERARD MCCANN PADDY HENRY JOHN LOWRY EAMON BUTLER Managing Director Director Director Senior Director Director Admin Director Associate Director Associate Director Associate Director CBRE Northern Ireland Office Agency Industrial Agency Retail Agency Retail Agency Valuation Asset Services Asset Services Asset Services Asset Services +44 (0)28 9043 6741 +44 (0)28 9043 6745 +44 (0)28 9043 6753 +44 (0)28 9043 6919 +44 (0)28 9043 6927 +44 (0)28 9043 6929 +44 (0)28 9043 6759 +44 (0)28 9043 6744 +44 (0)28 9043 6909 +44 (0)28 9043 6914 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] CAPITAL MARKETS

LUKE MCCLELLAND TOMÁS MCLAUGHLIN FODHLA GALLAGHER HELEN WATSON ROBERT DITTY BRENDAN WILSON KURT EASTWOOD BRENDAN DORRIAN JOAN MOORE DONNA-MARIE BRITTON Graduate Surveyor Graduate Surveyor Student Surveyor Admin Senior Director Graduate Surveyor Student Surveyor Health & Safety Manager Accounts Manager Purchase Ledger Retail Agency Agency Agency Agency Capital Markets Asset Services Asset Services Asset Services Asset Services Asset Services +44 (0)28 9043 6924 +44 (0)28 9043 6912 +44 (0)28 9043 6920 +44 (0)28 9043 6910 +44 (0)28 9043 6917 +44 (0)28 9043 6908 +44 (0)28 9043 6752 +44 (0)28 9043 6903 +44 (0)28 9043 6761 +44 (0)28 9043 6916 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] PROFESSIONAL SERVICES RECEPTIONIST HOTELS & LICENSED

GAVIN ELLIOTT ANDREW COGGINS AOIFE ROBINSON CHRIS CALLAN TRACY FLANNIGAN ROBERTA HENRY ALEX SPEERS FIONA MARTYN ELLEN MCGOURTY DEBORAH FENTON Director Director Admin Senior Director Director Credit Control Hotel Valuation Project Manager Student Surveyor Receptionist Capital Markets Capital Markets Capital Markets Professional Services Professional Services Asset Services Hotels & Licensed Building Consultancy Research +44 (0)28 9043 6740 +44 (0)28 9043 6750 +44 (0)28 9043 6915 +44 (0)28 9043 6926 +44 (0)28 9043 6751 +44 (0)28 9043 6922 +44 (0)28 9043 6921 +44 (0)28 9043 6911 +44 (0)28 9043 6905 +44 (0)28 9043 6928 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] VALUATION

JULIE MCCLELLAND ABIGAIL HOLLAND LEONORA MCERLAIN DEBORAH CROMIE STEVEN CONWELL Associate Director Student Surveyor Admin Director Associate Director Professional Services Professional Services Professional Services Valuation Valuation +44 (0)28 9043 6758 +44 (0)28 9043 6918 +44 (0)28 9043 6747 +44 (0)28 9043 6742 +44 (0)28 9043 6748 [email protected] [email protected] [email protected] [email protected] [email protected]

20 21 Looking for the wider view? Download these related Outlook reports from CBRE’s research teams.

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THE London THE UK Offices PROPERTY PROPERTY PERSPECTIVE PERSPECTIVE N Q3 2017 Published quarterly, our H1 2017 Published twice yearly, Investment Regional booms whilst office market occupier cross sectoral review of remains our UK offices report markets resilient in stabilise trends in London real first half focuses on the main office estate. markets outside London. UK OFFICE LONDO

THE THE Retail PROPERTY Logistics PROPERTY PERSPECTIVE CBRE RESEARCH PERSPECTIVE H1 2017 All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, including H1 2017 Logistics Including CBRE’s new The newest addition to The assets remain in high projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it Tourist Property Perspective stable, demand from Logistics Index, our spending investors and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency helps boost activity in our half-yearly report on unique valuation-based of the information of this publication. This report is presented for information purposes only exclusively for CBRE clients and professionals, and is not to be used or the busiest retail considered as an offer or the solicitation of an offer to sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and destinations what’s hot in UK retail index of ‘big box’ none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without prior express property. logistics real estate. written permission of CBRE. Any unauthorized publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost Published half-yearly. or expense incurred or arising by reason of any person using or relying on information in this publication.

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