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Out-of-town dominates office take-up

Out-of-town dominates office take-up Though take-up of out-of-town office space at 133,831 sq ft in this year’s third quarter is down on the same quarter of last year (158,763 sq ft), the number of deals at 32 is higher than the 20 recorded one year ago. However the city centre was markedly down at just seven deals totalling 38,055 sq ft compared the 18 deals and 107,819 sq ft for the same period last year. Last year was a record year and it’s impossible to have year on year increases every year. Supply is now a critical issue for the city centre with just 11,000 sq ft of new Grade A space available on the periphery of the city centre. This is the lowest figure for some years.

In Q3 there were two large lettings with Northern Gas & Power taking 9,444 sq ft in Gateshead’s Baltic Place and Zerolight taking the entire 14,920 sq ft Live Works on Newcastle’s Quayside, the largest city centre letting this quarter and the last of the city centre’s new Grade A space. Knight Frank acted for the landlord, Live Theatre. There is no doubt that business confidence has been dented by the EU Referendum but not as badly as was feared. Deals are still happening. The picture is more consistent out of town where there is more supply.

The largest was Durham City Council’s purchase of the 32,561 sq ft Salvus House building at Aykley Heads, Durham City, for £3m followed by Paseq’s take-up of 20,557 sq ft at Camberwell House, Doxford International, Sunderland, and three other large lettings each exceeding 10,000 sq ft - EDMI’s at Northumberland House, Gosforth Business Park, True Potential at Newburn House, Newburn Riverside and Vertu at Earl’s Court, Team Valley. This quarter has been impressive. ENDS

This was posted in Bdaily's Members' News section by Knight Frank .