According to our latest research, there has been an 18% increase in Newcastle City Centre office take-up during Q2 2012 compared to last quarter.
Despite a positive result for the city centre, the regional out of town market remains challenging as take-up fell during Q2 to 109,760 sq ft, from 166,792 sq ft in Q1.
Increased city centre activity
Tim Powner, from our Office Agency team in Newcastle, said: “There has been increased activity within the city centre during Q2 with high profile lettings such as Scott Logic and Technip taking occupation of Grade A space at St James Gate and Baltic Place respectively. New enquiries are coming to the market, primarily from professional service and companies working within off shore industries, bucking the trend during a time of perceived lower market activity.
Slight increase in occupier transactions
Tim added: “A significant amount of former Enterprise Zone office space is available in the region. However, due to the limited number of large out of town requirements in the market; we predict only a slight increase in occupier transaction levels during the remainder of 2012.
Rent levels at £20 per sq ft
“In the city centre, 270,000 sq ft of grade A space remains. We are witnessing a slow decrease of circa 8% per quarter as no new speculative schemes are coming on the market. Average city centre office rents stand at £20 per sq ft headline.”