Q3 North East office market take-up reached 232,026 sq ft across 38 deals during the months from July to September.
In the city centre, six deals totalling 48,015 sq ft were concluded, including two transactions over 10,000 sq ft in size. This was the highest quarterly take-up for the city centre since Q3 2018. The principal deals included a new entrant into the city centre, Aspire Technology Solutions who acquired 30,000 sq ft at Pipewell Quays and the 11,000 sq ft letting to Newcastle Hospitals Trust at The Lumen, which was the third successive letting following PC.
The out-of-town market saw a strong number of deals (32) with a total take-up of 184,011 sq ft, well above the five year quarterly average. The additional parking availability out of town has provided occupiers with the confidence needed to return to the office, with a lesser reliance on public transport.
Figures now show that immediately available city centre Grade A supply stands at just c 150,000 sq ft which accounts for 1.5% of total city centre stock. The new build grade A space coming to the market is starting to satisfy the anticipated demand with occupiers increasingly focussed on better quality accommodation – 91% of Q3 activity was for Grade A space.
New build grade A availability in the city centre is set to continue to grow over the next three years with a further 300,000 sq ft set to be delivered across three separate sites.