Partner Article

Out-of-town demand still dominant

~~Out-of-town demand still dominant

Once again out-of-town take-up of office space still dominates the regional market with 29 deals totalling 179,722 sq ft being completed compared to 14 deals totalling 86,938 sq ft completing in Newcastle city centre says the Offices Group. The out-of-town figure was boosted by the 77,632 sq ft letting to Utilitywise at Cobalt, North Tyneside and 46,600 sq ft let to AMA Group at White House, Peterlee, both on confidential terms.

City centre figures were boosted by Newcastle University’s freehold purchase of 34,134 sq ft at 89 Sandyford Road and Ernst & Young taking 11,897 sq ft of Grade A space at Citygate , both on confidential terms.

Chris Dent of DTZ comments: “The main concern in the city centre is the dwindling supply of Grade A space. There is circa 100,000 sq ft of Grade A accommodation available within the City centre with Wellbar Central, Baltic Place and Central Square South forming the majority. The only development currently on-site is The Rocket within the Stephenson Quarter bringing 35,000 sq ft of Grade A space to the market which is attracting strong levels of interest.”

“The limited supply of available Grade A stock combined with strengthening demand and positive take up levels may result in an increase in headline rents within Newcastle City centre, “ says Simon Taylor of Naylors. “ We detect that quoting rents are already starting to nudge up slightly and incentives are undoubtedly hardening”.

Tim Powner of Lambert Smith Hampton, which moved its office within the City centre this quarter, adds: “ Having been holding over for some time following lease expiry we felt the timing was right to relocate to ensure we are able to find the property that suited our needs and before rents begin to rise again.“

The Offices Group comprises BNP Paribas Real Estate, Bradley Hall, DTZ, Gavin Black & Partners, GVA, Knight Frank, Lambert Smith Hampton, Naylors Chartered Surveyors, Sanderson Weatherall and ES-Group.

ENDS

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