Property Group Managing Director Shares His Market Predictions For 2018

Neil Hart, managing director of leading North East chartered surveyors and estate agents Bradley Hall, shares his outlook on the upcoming regional commercial property market in 2018 following another successful year for the firm.

This year looks to be a prosperous period for the North East commercial property sector as it continues to benefit from the improving local economy. Following periods of uncertainty, including the financial crash, Brexit and other political pressures, it looks like business could be back to booming following an unexpectedly bright 2017.

Last year we saw the value of sales and acquisitions of commercial properties undertaken by Bradley Hall’s head office in Hood Street, Newcastle, increase by around 50%, and we’re looking forward to replicating this success and growth in 2018.

Newcastle city centre has recently emerged as the leading area for businesses which seek to expand in an attractive and vibrant area, and its popularity looks set to continue. The city also benefits from one of the lowest occupational costs of all the major UK regional cities, further supporting its accessibility for businesses of all sizes.

The region’s capital will continue to grow its attraction thanks to major investment and significant funding directed towards the tech and science sectors. Ground breaking developments like Newcastle Science Central, hailed as the £50m beacon of innovation, further support and promote the fact that the area is a hub of activity.

Thanks to the region’s economic climate and resilience against the era of online business, take up of traditional office stock was at its highest in three years during the third quarter of 2017, and demand is continuing. Investors noticed this opportunity, and our expert surveyors were responsible for bringing to market and successfully letting a range of newly refurbished office space following acquisitions and significant investment from expert and new landlords in the sector.

Thanks to this investment, interest and uptake, we predict that office rents will steadily increase due to a lack of new stock, alongside a retail rent rise in prime locations as the industry picks up again. Further indication of a long-term improvement in the regional economy comes from the recently proposed North of the Tyne Devolution Deal, which suggests that the area is set to attract £2.1bn in investments and boost the local economy by £1.1bn while creating 10,000 jobs. Despite some negative backlash suggesting that the £600m investment from the government over 30 years doesn’t support cuts made to the region since 2010, this still inspires confidence in the region’s economic future.

Outside of Newcastle and North Tyneside, we have worked on some exciting projects across the region, including investments, acquisitions and successful lettings of a range of shopping centers, industrial units, retail sites and offices in South Tyneside, County Durham and Sunderland.