North East commercial property reaps the rewards of continued investment in the region

Continued investment flooding into the North East’s key cities and industrial hubs is leading to increased demand for commercial property.

That is according to Bradley Hall, a full-service property agency with seven offices stretching from Alnwick to Tees Valley. Over the past 12 months, the company’s commercial teams have seen lettings and sales of office, industrial and leisure property ‘increase significantly.’

Analysis by the firm of the latest North East market data by CoStar also shows that, despite challenging conditions across the industry, the region continues to outperform the national average, showcasing its ‘resilience and potential.’

Key to this, according to the data gathered by the world leader in real estate information, has been the multitude of Grade A office and industrial developments currently being developed across the region.

Developments include HMRC’s commitment to build a 460,000sq ft regional hub at Pilgrim’s Quarter; the £400m international advanced manufacturing park (IAMP) adjacent to Nissan; Maker & Faber, the £100m Legal & General-backed Grade A office scheme at Riverside Sunderland; and the ongoing development of Durham’s Millburngate.

Richard Rafique, managing director, commercial at Bradley Hall, said: “Cranes seem to have dominated the skylines of our key cities throughout the past year and long may it continue.

“From Strawberry Place to Riverside Sunderland, Millburn Gate and TeesAMP, the North East is undergoing a regeneration programme not seen in generations and we have certainly bore witness to that. Over the past 12 months, we’ve seen industrial sales, investment opportunities and office sales and lettings all increase significantly, despite the many challenges facing the sector.

“And with more spades set to break ground and more cranes set to pepper our city skylines over the next 12 months, we’re wholly confident that while the national picture may be cloudy, the bountiful opportunities for businesses and investors looking to capitalise on the North East’s resurgence are clear for all to see.”

One of the sector’s hardest hit by the cost-of-living crisis and still reeling from the impacts of the pandemic however is the hospitality sector, yet this has done little to dampen the spirits of investors.

Buoyed by the development of a new Dakota Hotel on the former St Ann’s Wharf building on Newcastle’s Quayside, brokered by Bradley Hall, the sale of the freehold of the Hotel Indigo in Newcastle for £13.8m to KE Hotels and the opening of the new Holiday Inn at Riverside Sunderland, and Rafique believes there is still a lot of reasons to remain positive about the sector’s fortunes.

“We were delighted to work with Dakota on the acquisition of what is a prime site on Newcastle’s Quayside this month, but that is just one of the many success stories from the sector over the past year,” he added.

“As well as brokering multiple deals for The Inn Collection Group, we’ve also secured multiple lettings underneath the Holiday Inn at Riverside Sunderland and we’ve seen new bars open up in Durham and Newcastle. So, while the sector may still be recovering from the ills of the pandemic, it’s clear that it has done little to deter investment.”

By Mark Adair – Correspondent, Bdaily

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