The second quarter of 2018 saw 42 separate deals completed for out-of-town office space totalling 200,379 sq ft and was the highest level for the quarter for three years report the North East Office Agents (NEOA), comprising Cushman Wakefield, Bradley Hall, Gavin Black & Partners, Lambert Smith Hampton, Sanderson Weatherall, GVA, Knight Frank, Naylors, BNP Paribas and Dunlop Heywood.
With Newcastle city centre seeing 53,768 sq ft let in 11 deals, the total office space let across the region was 254,147 sq ft.
The £23.50 per ft rental tone once again confirmed with lettings to DWF for 7,456 sq ft at Central Square South, Stephenson Quarter, and 3,185 sq ft to GVA, also at Central Square South. The largest city centre letting was 13,606 sq ft to Newcastle University at Northumberland House, Princess Square, Newcastle upon Tyne.
Of the out-of-town sector, activity was boosted by the letting of 30,000 sq ft to Tommy Tippee, Balliol Business Park, and the 36,993 sq ft sale to Hays Travel at Gilbridge House, Keel Square, Sunderland at £14 psf.
The £13.50 per sq ft rental tone is firmly established in a number of regional out of town developments such as Team Valley, and Wynyard Business Park, with £14.00 sq ft being achieved with a letting to Finchale College at Belmont, Durham City.
The second quarter shows a positive trend continuing in Newcastle City Centre where the focus is on quality developments in Central Square, Time Central and Grey Street.