BNP Paribas Real Estate initial Q2 2022 data has revealed that the Newcastle office market is performing well against pandemic levels.
The latest data reported the following:
- H1 2022 overall office take-up for Newcastle and surrounding stands at 440,865 sq ft versus 239,127 sq ft let in H1 2021
- Q2 2022 Newcastle City Centre take-up totalled approximately 48,990 sq ft, outperforming 29,096 sq ft let in Q2 2021 and 35,272 sq ft let in Q2 2020
- The H1 take up in the city centre at 127,000 sq ft is on course to pass the typical 10 year average take up of 180,000 sq ft
- Q2 2022 take-up for out of town in Tyne & Wear and surrounding totalled 190,868 sq ft, outperforming the 123,595 sq ft in Q1 2022 and registering a 50% increase when compared with Q2 2021
- Rents within Newcastle city centre for Grade A accommodation range between £24.50 – £27.00 per sq ft
- In terms of take-up, the main lettings within Newcastle City Centre in Q2 was at Newcastle Helix’s The Lumen, along with three significant deals centred on Grey Street
Aidan Baker, Co-Head of the Newcastle office commented: “There continues to be a strong bias in demand for best in class accommodation as employers strive to provide office accommodation of the highest quality and offer employees space that is better than offered at home.
“Q2 2022 data suggests the number of new requirements have been maintained when compared to Q1, with the majority focussed on prime space in the city centre or best-connected locations with a very high level of staff amenity.
“The city centre market in Newcastle is still faced with restricted supply of new accommodation over the next 12 months, although the refurbishment of One Trinity Gardens will help supply.”
BNP Paribas Real Estate recently let 6,046 sq ft of office space at 41-51 Grey Street on behalf of Norham House to Everything Managed Group. The business solutions services provider took a 5-year lease on the second floor of the five storey office building at a rent of £20 per square foot.
