Knight Frank Newcastle has hung on to the top spot for the most office space transacted in Newcastle city centre over the past year*, in deals totalling over 73,000 sq. ft.
A league table just out** shows that Knight Frank’s office agency team – led by Patrick Matheson and Rebecca Maddison – handled the most office space of any agent in the region – transacting 73,045 sq. ft.
A shortage of Grade A office stock has created challenging conditions and agents have been doing more deals but transacting less space.
Knight Frank Newcastle has proved most resilient of all the agents, completing 21 deals – four more than their nearest rivals Lambert Smith Hampton.
The biggest transaction was 12,500 sq. ft. let to Trinity Mirror at Eldon Court.
Patrick Matheson, partner, Knight Frank, comments: “We are seeing a significant, what we call ‘flight to quality’ in the market, where occupiers are increasingly wanting contemporary, amenity-rich buildings.
“We have seen lots of activity on Grey Street; we have let over 15,000 sq.ft. at Earl Grey House to tenants Tangent, Epic Games and Teaching Personnel. We have also pre-let the Third Floor at 71 Grey Street. Both of these building are very modern with lots of amenities and the popularity of these spaces demonstrates that the landlords are investing in the right areas.
“Blandford Square was a highlight for us as it was a ‘defurbishment’. By that, I mean it was a non-traditional office fit out with exposed ceilings and services, and we pre-let this in its entirety before completion, to the Princes Trust.
“The Newcastle market is in good shape and there’s been a solid start to the year. Take-up totalled 93,000 sq. ft. in the first half (H1) of 2018, which is up 25 percent on the equivalent period in 2017.
“The issue is an acute shortage of Grade A supply with the next major development completion not expected until late 2019 – which is the Newcastle Helix. We expect to see upwards pressure building on prime rents over the next 18 months, Patrick said.”
*Period was from 1/8/17 – 31/7/18. Source is Radius Data Exchange.
**Office Agency League Table by Estates Gazette