Leading commercial property agent CBRE NI has reported a measured start to 2026 for Northern Ireland’s commercial property market, reflecting ongoing economic uncertainty and wider external pressures.
The latest figures, published in CBRE NI’s Q1 2026 Commercial Property Market Report, highlight a notable investment sector performance, with total investment volumes reaching just under £71 million in Q1 - almost double the figure recorded during the same period last year.
Building on positivity from 2025, retail performance has remained steady, with Belfast continuing to lead as the prime retail destination, supported by strong occupier demand and limited availability in core locations. Shopping centres and retail parks are also performing well, underpinned by continued investment activity and low vacancy rates.
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The office market experienced a quieter quarter than in Q4 of 2025. There was take-up of 56,358 sq ft across seven transactions, bringing the rolling annual figure slightly ahead of the five-year rolling average. While this points to a level of underlying stability, occupier decision-making remains measured, reflecting the broader economic backdrop. Prime rents remain at £26.50 per sq ft, with further growth anticipated as high-quality supply tightens.
Brian Lavery, Managing Director at CBRE NI, commented:
“While the market has made a cautious start to the year, the fundamentals remain sound and we are seeing steady demand across a number of key sectors, which reflects a degree of underlying confidence despite ongoing economic headwinds.
“What is increasingly clear, however, is that viability constraints are now the single biggest barrier to growth. Without meaningful intervention or improved cost conditions, this will continue to limit the pace at which new development can come forward.”
Northern Ireland’s hotel sector continued to build momentum throughout Q1 2026, underpinned by a combination of new openings, refurbishments and a strong forward pipeline. Trading performance was recorded as tracking marginally ahead of last year, with sentiment remaining positive as the sector prepares for a number of high-profile openings that are set to further strengthen Belfast’s hospitality offering.
This includes the anticipated launch of The Bedford Hotel, Aloft Belfast and Residence Inn by Marriott Belfast in the coming months, with this activity complemented by a healthy level of planning interest.
The industrial sector has seen a more noticeable uplift in enquiry levels, particularly for larger-scale requirements. However, the market continues to be constrained by a shortage of high-quality, modern accommodation, limiting the extent to which this demand can translate into completed deals.
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Across the living sector, delivery remains active in the short term, with over 1,200 student bedspaces scheduled for completion in 2026. Beyond this, however, the pipeline becomes markedly thinner, with no significant schemes currently expected in the following two years. This is despite research from CBRE indicating that Belfast retains capacity for additional purpose-built student accommodation when compared with similar regional cities.
Brian Lavery added:
“Q1 reflects a market that is stable, but lacking momentum. For activity to accelerate meaningfully, we need to see greater certainty around inflation and interest rates, alongside improved access to affordable finance.
“Until those conditions begin to ease, the market is likely to remain in a holding pattern, with progress driven by well-capitalised investors and sectors in which demand continues to outpace supply.”
Read the Spring 2026 edition free online →
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