Newcastle office market update Q4 2017
Office take up for the fourth quarter of 2017 totalled 124,527 sq ft comparing with Q4 2016 totally 129,266 sq ft and Q4 2015 totally 184,773 sq ft. The final quarter of 2017 has seen a flight to quality of stock.
In Q4 there was 9 city centre lettings totalling 38,022 sq ft with the largest lettings being to Citibase at Broadacre equating to 13,064 sq ft and Samuel Philips taking 5,059 sq ft at 18-24 Grey Street. Headline rents in this quarter stood at £23.50 per sq ft, reflecting the highest headline rent ever achieved in the city centre. Nearly half of the transactions within this quarter are above £17.00 per sq ft.
Out of town take up equated to 36 deals with the principle transactions being 10,059 sq ft at Fountain Court, Middlesbrough to First Source and 8,034 sq ft at Chancery Court, Blemont Business Park to British Sociological Association. The out of town take up has increased by 29% on Q4 2016. The average deal size in the out of town market equated to 2,402 sq ft in Q4, comparing against 3,572 sq ft in Q4 2016, highlighting the out of town market is somewhat skewed by the size of deals done.