Q3 North East office market take-up reached 109, 173 sq ft across 38 deals in three months from October to December.
In the city centre, eight deals totalling 31,912 sq ft were concluded in Q4 including one transaction over 20,000 sq ft in size. The take up was marginally down on the same time last year and also fell short of the previous quarters total.
The out-of-town market saw 30 deals with a total take-up of 77,261 sq ft, which fell short of the five yearly quarterly average. The key out-of-town transactions were Lucite International acquiring 13,126 sq ft at Onyx House, Stockton and Essentra Components taking 15,241 at Hawthorne in Viking Business Park, Jarrow.
Grade A city centre supply remains stable with circa 150,000 sq ft of space currently available. We expect this to increase within 2021 as grey space starts to filter out into the market.
Out of town supply has tightened once again with a respectable amount of take up in Q4. Nonetheless, new supply is on the horizon with 50,000 sq ft set to be developed at Harton Quay, South Shields by South Tyneside Council and a further two buildings totalling 150,000 sq ft are to be built speculatively by L&G on Sunderland Riverside.
For more information please get in touch with Michael Downey, head of our North East office agency team.