Newcastle prime office rents soar as availability tightens
Newcastle has experienced the greatest prime office rental growth of the top 10 UK regional city centres, according to the latest data from BNP Paribas Real Estate.
Newcastle prime office rents reached £32 per sq ft in Q4 2023, up 14.3% year-on-year.
Average regional growth was 7.2% year-on-year across Birmingham, Bristol, Manchester, Leeds, Edinburgh, Glasgow, Liverpool, Cardiff, Newcastle and Sheffield.
Newcastle has experienced the greatest prime office rental growth of the top 10 UK regional city centres, according to the latest data from BNP Paribas Real Estate.
Newcastle prime office rents reached £32 per sq ft in Q4 2023, up 14.3% year-on-year.
Average regional growth was 7.2% year-on-year across Birmingham, Bristol, Manchester, Leeds, Edinburgh, Glasgow, Liverpool, Cardiff, Newcastle and Sheffield.
Newcastle’s performance was driven by a lack of supply and a flight to quality, with grade-A city centre take-up accounting for 71% of the 207,078 sq ft total office take-up in the city in 2023. There were 39 deals completed during the year.
In 2022, city centre office take-up stood at 224,332 sq ft across 45 deals.
Looking ahead, the refurbishment of the 75,000 sq ft One Trinity Gardens and 35,000 sq ft East Quay 5 are expected to help improve supply over the next 12 months.
In the wider region, office take-up for Tyne and Wear totalled 383,186 sq ft in 2023 compared with 465,438 sq ft in 2022.
Aidan Baker, head of the Newcastle office at BNP Paribas Real Estate, said: “The Newcastle office landscape is shifting with occupiers coming through from a multitude of sectors, including tech, consultancy and professional services.
“These tenants are actively upgrading and seeking out the top spec spaces, which are well located and meet their ESG expectations. This is driving rents at the prime end of the market.”
Photo by Nigel Forster/Shutterstock
