Columnist

Sunderland leading way in UK office supply market

New data shows Sunderland is in a prime position to attract businesses to the city thanks to its significant share of the tight supply of new offices available in the UK.

The city’s new Maker & Faber office buildings – due to complete this month – will deliver 156,938sq ft of new commercial property, and are two of only four new-build office schemes completing and available to let this year across UK regional cities.

Others include Birmingham’s 3 Chamberlain Square and 3 Circle Square, in Manchester. 

According to Knight Frank data, only 350,000sq ft of newly-built office space is on the market outside of London. 

This is half the amount released in 2024, and 44 per cent down on 2023 in an already constrained office market.

This represents a very exciting time for Sunderland.

The completion of Maker & Faber on the hugely ambitious Riverside Sunderland development – the city council-led regeneration project that has attracted more than £600 million of investment – couldn’t have been better timed. 

We’ve seen from the success of The Beam – a 60,000sq ft office in Sunderland – that new offices with modern specifications are in high demand. 

Occupiers increasingly want high-quality, ESG-compliant assets in prime regional locations.

The exceptional specification, sustainability credentials and amenities at Maker & Faber mean you could be anywhere in the UK – these buildings compete with the very best on offer in Newcastle, Leeds, Manchester and Birmingham.

Real estate can directly support business objectives by providing spaces that attract top talent and support employee wellbeing and retention. 

The ‘flight to quality’ continues across UK cities and securing the right real estate remains challenging in this market.

As businesses focus on upgrading office spaces, many are utilising their lease events to vacate good quality buildings for even better-quality space. 

Companies including Virgin, O2 and Siemens are shifting from out-of-town locations to city centre offices to benefit from greater connectivity, higher quality amenities and closer proximity to talent.

Patrick Matheson is a partner at Knight Frank

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