Commercial real estate technology platform, Coyote Software, has published the latest data for the commercial real estate market in the North East of England, revealing how different asset classes have performed over the past 12 months.
Collating data from 109 assets and 1,200 leases from Darlington to Berwick-upon-Tweed, Coyote’s data provides insight into how the North East property market has fared following the easing of Covid-19 restrictions. The study compares how lease lengths, transaction sizes and transaction prices have all changed across the office, retail and industrial sectors, compared with the last five years.
Transaction Growth
- The average industrial transaction size has increased by +24% when comparing the last 12 months with the average industrial transaction size from the last 5 years
- The average industrial transaction size over the last 5 years is £2.17 million
- The price per square foot for industrial transactions has increased by +23% when comparing the last 12 months with the average industrial transaction size from the last 5 years
- The average office transaction size over the last 5 years is £5.99 million
- The average office transaction size has increased by +17% when comparing the last 12 months with the average office transaction size from the last 5 years
- The price per square foot for office transactions has increased by +11% when comparing the last 12 months with the average office transaction size from the last 5 years
- The price per square foot for retail transactions has decreased by -2% when comparing the last 12 months with the average retail transaction size from the last 5 years
Changing Lease Lengths
- The average industrial lease length has decreased by -5% when comparing the last 12 months with the average industrial lease length from the last 5 years
- The average office lease length has increased by +2% when comparing the last 12 months with the average office lease length from the last 5 years
- The average retail lease length has increased by +6% when comparing the last 12 months with the average retail lease length from the last 5 years
Oli Farago, CEO of Coyote Software, comments:
“The real estate market has bounced back strongly from the challenges of operating under Covid restrictions and the North East market is no exception. Anonymising data from across our platform, we have provided wider context by comparing performance over the past 12 months, with average performance over the past five years. Generally speaking the numbers make for very positive viewing.
“Despite concerns that the emergence of hybrid working might stymy the growth of the office market, average transaction size, lease lengths and price per square foot have all increased. The rise of the industrial sector has been well documented, but here again the North East has seen phenomenal growth – particularly when it comes to transaction size. It’s also encouraging to see that lease lengths in the retail sector have increased.
“Ultimately, what’s abundantly clear from this latest data is that the market continues to change. It is vital that as investors and operators survey the picture across the North East, they have immediate access to live, accurate and detailed data that supports their decision making and planning.”
