Newcastle
Take-up
TOTAL TAKE-UP IN QUARTER (SQ FT)
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
TAKE-UP (SQ FT)
Source: Avison Young
Take-up totalled 186,302 sq ft, 7% below the 10-year Q4 average. This brought total 2023 take-up to 700,337 sq ft, 9% below the average over the past decade.
Take-up was comparatively stronger in the out of town market at 11% above the 10-year average, while the city centre market was 25% below average.
Key deals included:
- Curtis Instruments’ 32,742 sq ft purchase at 2 Koppers Way;
- Cumbria, Northumberland, Tyne & Wear NHS Foundation Trust’s 24,500 sq ft lease at 1 Carliol;
- Flexible workspace provider Wizu’s 19,541 sq ft lease and management agreement at Portland House.
Over the past 12 months, the manufacturing and industry, professional services, and TMT and creative sectors accounted for 55% of all take-up.
Prime rents remained at £32.00 per sq ft, 14.3% up over the past year.
NOTABLE DEALS
Source: Avison Young
PRIME RENT
Per sq ft
Quarterly change
Source: Avison Young
12 month change
Rent free months (10-year lease)
TAKE-UP BY SECTOR (SQ FT)
Source: Avison Young
ANNUAL TAKE-UP (SQ FT)
Source: Avison Young
Availability
AVAILABILITY RATE
CHANGE ON LAST QUARTER
CHANGE ON LAST YEAR
AVAILABILITY (SQ FT)
Source: CoStar, Avison Young
The availability rate rose by 180 basis points in the quarter to 9.5%. Premium quality space is undersupplied with the grade A availability rate at 1.5%.
Development pipeline
DEVELOPMENT PIPELINE (SQ FT)
Source: Glenigan, Property Market Analysis, Avison Young
32,000 sq ft is under construction and available to let at The Pattern Shop, due to complete in 2024. HMRC’s 464,000 sq ft Pilgrim Place office is also under construction and due to complete in 2027.
Investment
TOTAL INVESTMENT VOLUMES
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
PRIME YIELD
INVESTMENT VOLUMES
Source: Real Capital Analytics, Avison Young
INSIGHT
- Lorem ipsum dolor sit amet, consectetur adipiscing elit.
- Etiam non lectus nec risus faucibus euismod sed tempus tellus.
- Quisque malesuada lorem nec mauris faucibus, nec ornare erat egestas.
- Aliquam vehicula libero ac porta luctus.
- Vivamus pharetra neque sed pulvinar aliquet.
TOP DEALS
This report has been prepared by Avison Young for general information purposes only. Whilst Avison Young endeavours to ensure that the information in this report is correct it does not warrant completeness or accuracy. You should not rely on it without seeking professional advice. Avison Young assumes no responsibility for errors or omissions in this publication or other documents which are referenced by or linked to this report. To the maximum extent permitted by law and without limitation Avison Young excludes all representations, warranties and conditions relating to this report and the use of this report. All intellectual property rights are reserved and prior written permission is required from Avison Young to reproduce material contained in this report.