Continued Investment In Office Market In Newcastle City Centre

Tim Aisbitt, Associate Director at leading North East property firm Bradley Hall, discusses the positive outlook on Newcastle's city centre office market.

During the first half of this year Bradley Hall has experienced a significant increase in investment and demand for office space in the region’s capital.

We recently welcomed to the market several impressive refurbished office schemes in Newcastle City Centre. Landlords are identifying that the city centre is an ideal location to invest in high quality and well located office space, with continually changing attitudes towards the space we work in.

Investors are also benefitting from reliable investment yields, with sustained rental growth continuing in light of the lack of supply of available office space in the city centre. A contributing factor is the large number of traditional office buildings being converted into student halls of residence.

Prime rents have modestly increased by 1.4% in comparison to last year thanks to the slow and steady increase in demand. Despite wider economic uncertainty, the North East remains resolute and optimistic.

As well as proving a popular location with both local and national investors, Newcastle also offers good opportunities for businesses who want to expand in an attractive and vibrant city which offers one of the lowest occupational costs of all the major UK regional cities.

The city is also benefitting from major investments and significant funding being directed towards the tech sector and sciences, including ground breaking developments like Science Central which is continuing to gather pace.

More traditional office stock is continuing to be popular and the owners of The Collingwood Buildings, on Collingwood Street, have invested over £300,000 in updating the boutique offices, which boast luxury amenities all within a stone’s throw of the train station. A collection of 35 of the 130 fully furnished offices are currently available, ranging from 125sq ft to 2,000sq ft, and include great modern facilities in an attractive period building.

Other offices in the heart of Newcastle which are set to undergo significant investment and refurbishment include 18-24 Grey Street, following its multi million-pound purchase by Adam Thompson. His firm, Stessa Commercial, part of Stessa UK, purchased the building and is now set to further invest in the Grade II listed office space on one of Newcastle’s most iconic streets.

Our most recent appointment is to market offices within 26 Mosley Street, a fabulous building and originally the National Westminster bank, based above the popular Miller and Carter steakhouse. The property spans across three floors, totalling approximately 9,000ft², with a range of stylish and refurbished spaces available to let. Landlord, HMC Group, have invested significantly in an 18 month long project to modernise the space in preparation for new tenants, and works are set to complete in the late summer of this year.

In addition to office space to let, we have a range of office investments available both on and off market.