Member Article

Newcastle office uptake rises in 2012

Office take up in Newcastle has increased by 10% in the first three quarters of 2012, when compared with the same period last year.

Research carried out by real estate firm BNP Paribas showed that by the end of the third quarter, occupied office space had increased to 482, 610 square feet, while out of town office space increased by 25% year-on-year.

City centre office uptake, however, fell by 18% in the 9 months up to the end of September 2012 to 140, 265 square foot of occupied space.

The real estate firm predicted that the final quarter of the year will be quieter than last year, and city centre take up would suffer.

Director of Office Agency at BNP Paribas, Aidan Baker, said: “The market has so far fared reasonably well during another tough year.

“One key trend in 2012 is the increased proportion of grade A space acquired within the CC (city centre) - some 25% higher than last year although this will be partly due to generous incentives making space more affordable.”

“In relation to Newcastle’s headline rent, it remained unchanged in Q3 2012, at £20.00 per sq ft. CC incentive levels continue to remain favourable, with tenants currently negotiating three years rent-free on a straight 10 year term.

“For shorter five year leases, tenants are expecting to receive in the region of 12-18 months rent-free. At £16.95 per sq ft, the Newcastle OOT headline rent also remains unchanged.”

Grade A office availability has fallen in Newcastle city centre, whereas the number of high quality out of town offices is on the up, as a result of increasing building completions at past Enterprise Zone schemes.

This was posted in Bdaily's Members' News section by Miranda Dobson .