Our latest Newcastle Office Market Pulse, which provides investors, occupiers and developers with detailed insight across the region, revealed that combined take-up across the city centre and out-of-town reached 124,527 sq ft in Q4 2017; some 35% down on the same period in 2016. However, there is an expectation that 2018 will return to normality.
Michael Downey, Office Advisory at LSH Newcastle, commented: “Total annual take-up figures for 2017 did fall below the five year average in both the city centre and out-of-town market at 178,000 sq ft and a 453,000 sq ft respectively. However, there were a number of transactions in solicitor’s hands that had aimed to conclude in December which carried over into January. Consequently, Q1 2018 is expected rebound significantly in both the city centre and out-of-town respectively.”
Meanwhile, investment volume was hampered by a limited availability of high quality office stock, with just one transaction of any note completing during Q4 2017.
Bill Lynn, Director of Capital Markets at LSH Newcastle, said: “The last three months of 2017 saw a lack of activity in the office investment market, with modest availability and only the sale of Kings Court, North Shields in the sum of £2.3m, to speak of.”
Read the full Q4 2017 Newcastle Office Market Pulse.