Office take-up in Newcastle increased by 59% in H2 to reach 160,000 sq ft. Of this, a total of 107,800 sq ft was transacted in Q3, a record amount of quarterly take-up for the city.
As a result total take-up for the year reached 260,200 sq ft, an increase of 42% when compared to 2014. Notably, the 2015 total represented the highest level of take-up recorded since the financial crisis of 2008.
The Technology, Media and Telecoms (TMT) sector represented the largest occupier group in both H2 and during 2015, accounting for 34% and 30% respectively. This continues the trend from last year where the sector was responsible for 27% of total space let. During H2, the 17,000 sq ft letting to game development company Ubisoft at the Haymarket Hub was the largest transaction by a TMT occupier. This was one of three leases above 10,000 sq ft committed to by a technology firm in H2.
The letting of 23,000 sq ft to Ernst & Young at One Citygate was the largest transaction of H2 however. This was followed by the 18,300 sq ft sale to Adderstone at Kings Manor. These transactions contributed to a total of eight deals above 10,000 sq ft during 2015. This represents a notable increase from last year when four deals above this threshold were completed.
Source : Knight Frank