Newcastle city centre office developments secure “impressive” occupancy levels

Over the last 30 years there has been a supposed “rush” to East Quayside’s office developments by the professional and legal sectors because the “fixed fabric” of Newcastle city centre could not provide the larger floorplates required of office accommodation.

Avison Young argues that “times are changing now” with an improved offer of top-quality Grade A space being built speculatively by the private sector within the city centre, at Newcastle Helix and at East Pilgrim Street.

Developers and investors who pushed forward with major new office buildings in Newcastle city centre have secured an “impressive” take up of space both by way of pre-lettings and new lettings over the last two years.

Two new developments have brought forward three brand new speculative office blocks of 100,000 sq ft plus, namely The Lumen and The Spark at Newcastle Helix and Bank House at Pilgrim Place.

The lettings to Clifford Chance (15,000 sq ft) and Hay and Kilner (14,600 sq ft) at The Lumen, Newcastle Helix saw take up of two further floors within the “exemplar” Grade A office building. The latest letting involved 7,190 sq ft on the fourth floor takes the building occupancy to 88 per cent.

Womble Bond Dickinson has taken occupation of 40,000 sq ft at the adjoining Phase 2 building, The Spark, which achieved practical completion early 2022. The National Audit Office (NAO) recently signed up to take 10,000 sq ft on the fourth floor. Avison Young and Savills are joint letting agents on both buildings.

Bank House, Pilgrim Street which extends to 120,000 sq ft is scheduled to be completed in April 2023, being the first phase within the Pilgrim Place scheme, which can accommodate a further 260,000 sq ft of speculative office space alongside Bank House.

Pre-lettings to DAC Beachcroft (15,000 sq ft) and Lycetts (10,000 sq ft) were secured six months prior to the scheduled building completion date. Knight Frank and Avison Young are the joint letting agents.

Tony Wordsworth, director, Avison Young, commented: “The Lumen, The Spark and Bank House provide best in class workspace, which enables tenants to improve the quality and efficiency of the space they occupy.”

By Matthew Neville – Senior Correspondent, Bdaily

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