Newcastle
Key stats
TOTAL TAKE-UP IN QUARTER (SQ FT)
-58% CHANGE ON LAST QUARTER
VACANCY RATE
+94BPS CHANGE ON LAST QUARTER
PRIME RENT PER SQ FT
0% QUARTERLY CHANGE
TAKE-UP (SQ FT)
Source: Avison Young
Following a historic quarter for take-up in Q1, office demand fell in Q2 to sit 26% below the 10 year average. Nevertheless, 2025 represents the strongest start to a year for demand since the pre-pandemic period reaching 481,000 sq ft.
The largest deal of the quarter was seen out of town, where education provider UKMC let 46,400 sq ft at North of England House in Doxford to drive a positive quarter for the Government and Services sector. In the city centre, Atom Bank let the entirety of the recently completed Pattern Shop to relocate from Durham.
City centre office vacancy rates increased to near record highs over the quarter, driven by the release of Grade A space. Additionally, Newcastle’s short-term development pipeline remains dominated by HMRC’s pre-let offices due to complete later in 2025, whilst 250,000 sq ft of space is due to complete at Pilgrim Place in 2027.
Prime rents in Newcastle remained unchanged at £32.00 per sq ft, whilst rent frees remain at 20 months for a 10-year lease.
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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