At 171,886 sq ft, take-up across the combined Newcastle city centre and out-of-town office markets remained slightly ahead of the five-year quarterly average during Q3 2016.
While this figure is down some 7% from the previous quarter and 36% from the same period in 2015, we are encouraged by how well the region’s occupier markets have withstood the post-Brexit backlash.
Take-up in the out-of-town market remained fairly consistent over the past four quarters, with Q3 2016 a fraction above the previous three months at 133,831 sq ft.
The city centre, which is severely constrained by an ever-decreasing supply of grade A space, transacted just 38,055 sq ft, which was bolstered by Zerolight’s letting of the entire 14,920 sq ft at Live Works - the last of the city’s new developments.
Some larger requirements still remain unsatisfied and there are now very few options available in the city centre.