The owners of a £40 million office development in Belfast’s Titanic Quarter are seeking to amend its planning conditions after two years without attracting a single tenant.
The 146,000 sq ft Olympic House was opened in October 2022 as a co-development between Belfast Harbour and Titanic Quarter Ltd.
But their joint venture, OH (Office) Developments Limited, said it needs to change a key condition of the planning permission granted in 2014, in order to attract tenants.
That condition stipulates that 80% of floorspace must be used for R&D (research and development) purposes.
It was hoped it would support the further development of the Titanic Quarter as a hub for innovation and science.
But OH (Office) Developments claim it no longer reflects the current office market since the Covid-19 pandemic, with prospective tenants seeking more flexibility.
As a result, they have applied to Belfast City Council seeking permission to permit occupation for unrestricted office use.
It’s understood a number of multi-national companies have expressed interest in Olympic House, attracted by its ESG (environmental, social and governance) credentials.
Many global firms have embraced ESG polices around energy efficiency and sustainability.
The combination of ESG policies and hybrid working has already resulted in the likes of Lloyds and Santander relocating their Belfast bases to new build offices.
CBRE boss Brian Lavery, which is the letting agent for Olympic House, said the 146,000 sq ft building represents more than one third of all the existing ESG compliant office space in Belfast at present.
“It has been accepted by Belfast City Council that there is less than one year’s supply of similar quality accommodation across the city,” he said.
OH Developments claim the 80% R&D requirement is acting as a barrier to progress.
But the application has not been without controversy.
A number of objections have been lodged over concerns the move could threaten Belfast city centre as the primary location for office use.
Objectors include Chichester Properties, which owns The Paper Exchange in Belfast city centre.
The 200,000 sq ft speculative office scheme, built at a cost of £45m, was completed in early 2023.
However, the OH Developments proposal has the backing of both Belfast Chamber and the NI Chamber.
One person familiar with the bid said rather than competing with the city centre, the prospective tenants for Olympic House are looking at other cities in the UK and Ireland.
Chair of OH (Office) Developments Ltd, Jonathan Hegan said: “What global businesses are seeking are flexibility, and they are demanding the highest quality and ESG compliant accommodation.”
He said Olympic House has the potential to support 1,500 jobs.
“However, a planning restriction that limits its use primarily to research and development office space is preventing occupation by commercial tenants and so the city isn’t benefiting.
“Restrictions like this are not found in locations like Salford, which has been a key part of the overall growth of Manchester.
“We are working closely with stakeholders across the city, to ensure Belfast can attract and accommodate large employers, and through our planning application to Belfast City Council we strongly demonstrate that Olympic House is complementary to, rather than competing with, other office space within the city.”
