Newcastle office market update Q1 2018

Silverton House, Northumberland Business Park
Published on: 22nd May 2018

Total Newcastle office market take up for Q1 stood at 171,943sq ft which reflected a 38% (124, 527 sq ft) increase on the previous quarter, Q4 2017.

View the Q1 2018 Newcastle office market update here.

Office take up in Newcastle city centre totalled 39,194 sq ft, equating to the strongest first quarter in the city centre since 2015. The largest city centre letting of the quarter saw Turner and Townsend relocate from Grade B accommodation into 5,228 sq ft of prime Grade A office space at Time Central. A further key deal was the freehold sale of 50 Grey Street to a private owner occupier for £4.05 million following a competitive bidding process.

Headline rents of £23.00psf remained consistent with the levels experienced during 2017 with many city centre transactions below 5,000 sq ft. 80% of transactions out of town were also sub 5,000 sq ft with a common theme being set for medium sized occupiers acquiring stock for their own occupation.

Out of town take up was also up during the first quarter of 2018, reaching 132,749 sq ft across 45 deals compared to just 86,505 sq ft across 36 deals in Q4 2017. The principal transactions of this quarter were 16,000 sq ft at Durham Gate Spennymoor to Learning Curve and Utility Alliance who took 13,333 sq ft at Quorum business park.

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Three new shareholders in our North East offices

We are delighted to announce the appointment of three new shareholding partners across our North East offices. Kevin McGorie, Liz McLoughlin and Matthew Clarke have become shareholders in our Newcastle and Teesside offices, bringing our total number of shareholders to 29.

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We are delighted to announce the appointment of three new shareholding partners across our North East offices.

Kevin McGorie, Liz McLoughlin and Matthew Clarke have become shareholders in our Newcastle and Teesside offices, bringing our total number of shareholders to 29.

[fulltext] =>

Kevin McGorie, partner in our agency team, joined us in 2006 as a placement student. Kevin specialises in providing advice on the acquisition and disposal of property across the North East.

Liz McLoughlin, partner in our rating and compulsory purchase team, joined us firm in 2008. Liz specialises in advising acquiring authorities, developers and claimants on all aspects of valuation and compulsory purchase associated with regeneration.

Matthew Clarke, partner in our valuation team and head of our Teesside office, joined us in 2000. Matthew has over 18 years’ experience undertaking commercial and residential property valuation work on behalf of major lending institutions and other private clients throughout the North East.

Commenting on the appointments, Richard Farr, head of our Newcastle office said, “We are delighted to welcome Kevin, Liz and Matthew on board as shareholders, particularly during such an exciting time for the firm as we mark our 160th anniversary in the North East property market, as well as launching an updated brand. I am looking forward to seeing our new shareholders make their impact as key influencers the firm’s future growth.”

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Income producing industrial investment for sale in Team Valley Trading Estate, Gateshead

Our North East agency team has recently been appointed to sell the long leasehold interest of Unit 6 Queensway North, a large industrial investment in Team Valley Trading Estate. Team Valley is one of the busiest commercial estates in the North East, with roughly 700 companies on the estate and over 20,000 people travelling their every day. The estate is located less than 5 miles from Newcastle city centre and benefits from direct access to the A1(M), which provides convenient access to the regional and national motorway network.

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Our North East agency team has recently been appointed to sell the long leasehold interest of Unit 6 Queensway North, a large industrial investment in Team Valley Trading Estate.

Team Valley is one of the busiest commercial estates in the North East, with roughly 700 companies on the estate and over 20,000 people travelling their every day.

The estate is located less than 5 miles from Newcastle city centre and benefits from direct access to the A1(M), which provides convenient access to the regional and national motorway network.

[fulltext] =>

Kevin McGorie, agent in our Newcastle office, commented, “The property has a gross internal area of just over 18,000 sq ft and offers investors a really exciting proposition.

“We are seeking offers in the region of £1,150,000 exc. of VAT, reflecting an net initial yield of 6.08%, an attractive return for potential investors.”

The property is currently let to Endless LLP, who trade as Carpet & Flooring Ltd on a 10 year lease from April 2014 expiring in 2024 at a passing rent of £73,797 per annum.

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Video - Leeds Office Market Update Q1 2018

2018 kicked off with the strongest recorded Q1 take up in 5 years. Find out more in our video:

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2018 kicked off with the strongest recorded Q1 take up in 5 years. Find out more in our video:

[fulltext] =>

2018 kicked off with the strongest recorded Q1 take up in 5 years with total Leeds office market take up at 275,691 sq ft, a 75.6% increase on Q1 2017.

This quarter we have produced our Leeds quarterly update as a video, which you can watch below.

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