Newcastle’s office market delivered an annual combined take up of 800,106 sq ft across both City Centre and Out of Town office stock. In total there were 160 deals transacted in 2025 with city centre occupation out performing the out of town market for the first time. This could be due to the continued push towards higher quality office stock with ESG credential pressure on larger businesses, although it should be noted that the DWP transaction of 173,245 sq ft does somewhat contort the true picture of the market.
The market has seen a large push towards best of class accommodation, with both large and small businesses tending to conclude Grade A office transactions which is against the trend of the pre-covid market in the North East. Where tenants used to be extremely cost sensitive, it now seems that employers are fully aware that in order to attract good quality staff into the workplace, you must provide high quality office accommodation to aid staff wellbeing. This has seen an explosion of new Grade A serviced office schemes across the city which the majority are sitting at close to full occupancy on transactions of sub 2,000 sq ft.