An upsurge in demand for industrial properties on Gateshead’s Team Valley has created a string of lettings.
Knight Frank Newcastle’s Logistics & Industrial team has been involved in over 175,000 sq. ft. of lettings across 18 units on the Team Valley this year – ranging in size from 500 sq. ft. to 30,000 sq. ft.
The most recent letting is the last unit on UK Land Estates’ speculative Dukesway Central scheme which has been taken by Dutch-headquartered Boels Rental.
Boels Rental, who supply equipment and machinery to the construction industry, join snack manufacturer It’s All Good in Phase 1 of the 60,000 sq. ft. Dukesway Central scheme.
UK Land Estates is also building a new three-acre facility for MAN Truck & Bus UK Ltd which is the second phase of the development. The German-owned company has committed to a new 25-year lease, reflecting the success of their business in Gateshead over the last 20 years.
Other key lettings secured by Knight Frank include 29,000 sq ft to Network Rail on Queensway North and 20,000 sq. ft. to Tructyre (part of ATS Euromaster) within Queens Court – both deals done on behalf of UK Land Estates, alongside joint agents Naylors.
Partner in the logistics and industrial team at Knight Frank Newcastle, Mark Proudlock, said: “After a challenging period particularly for mid-sized sheds on the Valley, there has been a surge in demand resulting in strong take up of units. We are pleased to have been at the forefront, achieving a number of successful lettings on behalf of our clients.
“Stock levels on Team Valley are now dwindling, further adding to the shortage across our region.”
UK Land Estates has recently been granted planning permission to develop two adjoining sites covering 4.92 acres of land at Eighth Avenue, providing capacity for prime logistics or manufacturing space from 35,000 sq. ft. up to 90,000 sq. ft.
Commercial Director, UK Land Estates, David Gibbs said: “With some of our last buildings of scale being let to occupiers of national and global standing, it’s positive that we have secured planning to enable us to quickly deliver new buildings into a market where companies are finding it increasingly difficult to find property to meet their needs.”
Knight Frank LLP is the leading independent global property consultancy. Its Newcastle office has a 76-strong team who provide property management, office and industrial buildings agency, building consultancy, ratings and lease advisory and property valuations. The team is very proactive in the market, using its unrivalled access to the latest markets research to ‘know things first’. They are a friendly team, with personality, that deliver a personal service.