Partner Article

Occupier take-up rises 18 percent in Newcastle

National commercial property consultants Lambert Smith Hampton (LSH), has reported an 18 per cent increase in office space take-up during Q2 (April-June 2012) from Q1 totalling 47,832 sq ft.

However, despite a positive result forNewcastle city centre, the regional out of town market remains challenging as take up fell during Q2 to 109,760 sq ft from 166,792 sq ft in Q1.

These findings are from the inaugural LSH Office Market Pulse report which will be outlining the current trends in commercial property take-up across the North East on a quarterly basis.

Tim Powner, Senior Agency Surveyor at Lambert Smith Hampton said: “It is encouraging to see increased activity within the City Centre during Q2 with high profile lettings such as Scott Logic and Technip taking occupation of Grade A space at St James Gate andBaltic Placerespectively. We continue to witness new enquiries coming to the market primarily from professional service and companies working within off shore industries which somewhat bucks the trend during a time of perceived lower market activity.

“With the significant amount of former Enterprise Zone office space available around the region and the limited number of large out of town requirements in the market at present we predict only a slight increase in occupier transaction levels during the remainder of 2012.

“270,000 sqft of grade A remains available in the City Centre although we are witnessing a slow decrease of circa 8% per quarter as no new speculative schemes are coming on the market.”

Average City Centre office rents stand at £20 psf headline.

For further information please contact agent Lambert Smith Hampton - Tel: 0191 261 1300 or visit www.lsh.co.uk.

This was posted in Bdaily's Members' News section by Graham Oldfield .