Newcastle Office Market
May 11, 2017 Leave a comment
A recent 2017 report by Knight Frank, revealed that Newcastle city centre take-up fell by 15% during 2016 reaching 220,000 sq ft.
Business Services accounted for the largest proportion of city centre take-up in 2016 at 22%. There was also a continued increase in activity in the TMT (technology, media and telecom) sector.
Out of town, total take-up reached 492,000 sq ft, with the North East has attracted an increasing number of ‘footloose’ occupiers in recent years.
Key transactions included a 35,000 sq ft letting to Convergys at The Rocket in the Stephenson Quarter. The most significant deal in the TMT sector was Zerolight’s new lease of the entire LiveWorks development on Newcastle Quayside (15,000 sq ft) only months after the building completed.
Metropolis is monitoring around 20 companies with identified or possible office searches in Newcastle.
Figures from local agent Naylors show 177,041 sq ft of out of town office space in Newcastle was let in Q1 of 2017. In contrast, only 33,461 sq ft of city centre office space was let in the same period. In Q1 2017, Frank Recruitment let 19,000 sq ft at the St Nicholas Building, while Sir Robert McAlpine is taking 8,000 sq ft in the same building.
Out of town, Quorum Business Park secured the largest letting with Sitel taking 47,000 sq ft. Other significant deals included Leeds Building Society moving their regional HQ from Silverlink to Cobalt Business Park and Parseq acquiring 20,000 sq ft at Camberwell House, Doxford Business Park.
The office market in Newcastle remains relatively quiet, with the majority of companies approaching lease events in 2017, choosing to renew current arrangements rather than search for alternative space. Future market growth is likely to mainly come from companies outside the region inward investing and expansions.
Boost for Newcastle Office Market
September 19, 2019 Leave a comment
Recent research from Lambert Smith Hampton reveals a spike in activity in the Newcastle office market.
While Newcastle city centre saw 21 lettings completed within the three months to June totalling 46,010 sq ft. In contrast, it was a record breaking quarter for the out-of-town market, with 322,827 sq ft of office space let, across 32 transactions.
Recent lettings bring the total space let or sold across the city centre and out-of-town markets combined during the first half of 2019 to an exceptional 583,924 sq ft.
The largest confirmed office movers, recently announced, include software giant Sage’s letting of two buildings at Cobalt Business Park totalling 203,728 sq ft, marking it the largest out-of-town office letting in the North East region. In addition, Repairify UK took 15,600 sq ft at Traynor House in Newcastle and Eldon Consulting took 6,000 sq ft at Pandon Bankside, NE1. Elsewhere a 10,000 sq ft deal was agreed by a
confidential occupier at Berrymoor Court, Cramlington and there was a handful of circa 5,000 sq ft deals.
Metropolis is monitoring a number of occupiers interested in moves in Newcastle, including Performance Horizon and Barclays Bank. Starling Bank, the digital lender, has a requirement for around 930 sq m (10,000 sq ft) of regional offices and Newcastle is one of three locations on the shortlist. Metropolis is talking to 100 office occupiers in Newcastle and Gateshead approaching lease expiries in the next two years.
Newcastle has seen substantial growth in the tech sector over the last five years, with digital tech start-ups increasing by 154% from 2011 to 2016. The long-awaited JEREMIE2 funding now live and new access to finance should also stimulate the city’s tech sector. The £120 million fund could support 600 businesses over future years.
The 106,000 sq ft Lumen building at the Newcastle Helix regeneration scheme in the city centre is expected to complete at the end of this year, with the next phase of the scheme, 107,000 sq ft Spark, due to commence soon. At the Stephenson Quarter, Newcastle Council are looking to appoint a development partner to complete the next mixed-use phase, to include offices.
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