Increasing confidence has released pent-up demand and requirements that have been on hold during the past 18 months. As such, there has been a depth to the number and size of deals this quarter, including some exceptional lettings.
The Newcastle office market has recorded its strongest quarterly take-up on record, following an exceptional letting to inward mover Just Eat. The online food delivery service has taken 217,339 sq. ft at the former EE contact centre at Rainton Bridge.
The out-of-town market accounted for almost 90% of the 369,000 sq. ft take-up total, which included four further deals over 10,000 sq. ft. The largest occupier in the city centre was also an inward mover into the city, 13,334 sq. ft to Debit Finance at Central Square South.
Tony Wordsworth, Director at Avison Young, Newcastle comments. “Sentiment remains positive with deals in the pipeline and a healthy level of enquiries, many of which were put on hold during the pandemic. Occupiers are returning and viewings are increasing, albeit many are looking for slightly less but better-quality space. A number of occupier moves are considering carbon commitments, which means new or refurbished space is in high demand.”
He continues. “Consequently, there continues to be considerable interest in the remaining four floors at the recently completed Lumen and The Spark, which is under construction. In addition, 120,000 sq. ft Bank House on Pilgrim Street is fully available, but not due to complete until Q1 2023. Headline rents remain at £26 per square foot, although asking rents are now at £27 psf.”