Newcastle
Key stats
TOTAL TAKE-UP IN QUARTER (SQ FT)
+414% CHANGE ON LAST QUARTER
VACANCY RATE
+81BPS CHANGE ON LAST QUARTER
PRIME RENT PER SQ FT
0% QUARTERLY CHANGE
TAKE-UP (SQ FT)
Source: Avison Young
Q1 2025 saw the largest deal in Newcastle city centre complete in four years; DWP’s 173,000 sq ft pre-let at Rueben Brothers Pilgrim Place, signaling a major vote of confidence in the Newcastle office market.
As a result take-up in Newcastle reached 337,520 sq ft, up 414% on a subdued Q4 2024 and 79% up on the 10-year quarterly average. Expectedly, the Government & Services sector dominated take-up share in the first quarter accounting for 66%.
Major pre-lets from the likes of DWP and HMRC mean the Pilgrim Place scheme is 88% let with only 84,000 sq ft at 2 Pilgrim Place remaining available and due for completion in Q2 2027. We are tracking no other developments or extensive refurbishments under construction in the city currently.
Prime rents in Newcastle city centre saw no change at £32.00 per sq ft and rent free periods remain at 20 months on a 10 year lease. OOT rents remain at £16.95 per sq ft.
NOTABLE DEALS
Source: Avison Young
TAKE-UP BY SECTOR (SQ FT)
Source: Avison Young
ANNUAL TAKE-UP (SQ FT)
Source: Avison Young
AVAILABILITY (SQ FT)
Source: CoStar, Avison Young
DEVELOPMENT PIPELINE (SQ FT)
Source: Glenigan, Property Market Analysis, Avison Young, Glenigan
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