Member Article

Regional office take up for Q3 ‘best for three years’

Regional office take for the third quarter totalled 166,843 sq ft compared with Q3 2016 (133,831 sq ft) and Q3 2015 (158,763 sq ft) letting statistics released by the North East Office Agents Forum (NEOAF) reveals.

This third quarter was also the best quarter so far this year for take-up with some notable city centre lettings. Out of town activity was also brisk though the average size deals was just 2,745 sq ft.

NEOAF, comprising the leading office agents, BNP Paribas Real Estate, Bradley Hall, Cushman & Wakefield, Gavin Black & Partners, GVA, Knight Frank, Lambert Smith Hampton, Naylors Chartered Surveyors and Sanderson Weatherall, is the leading source of regional statistical information on the office sector. Spokesman, Greg Davison of Cushman & Wakefield says “the overall picture is far from gloomy given the traditionally quieter summer period”.

He adds: “Economic uncertainties do remain centred on the BREXIT issues and the spin off of those issues on the wider economy. However the North East has many strengths as a business location and there is no doubt that these strengths will continue to be attractive to occupiers. As a result I anticipate annual take up is likely to be similar to last year which will be solid if not spectacular highlighting lack of Grade A supply and relative few larger out of town deals.”

In Q3 there were 18 city centre lettings totalling 65,286 sq ft with the largest lettings being by Trinity Mirror, 12,539 sq ft, and the Communicator Corporation, 5,681 sq ft, both on the 2nd floor, Eldon Court, Newcastle city centre, and Norton Rose Fulbright’s letting of 6,950 sq ft, Quayside House, Quayside, a major inward investment. Dominant sectors were professional services, IT, creative and media. The highest rent was £21.50 psf

There were 37 out of town lettings totalling 101,557 sq ft. The largest was Siemens letting 13,030 sq ft at Cobalt 9B. The largest freehold sale was the 17,887 sq ft Fern Court, Peterlee, which was acquired by Isocom, the electronic parts distributor. The highest out of town rent in Q3 was £14.75 psf.

This was posted in Bdaily's Members' News section by Knight Frank .