| the north east
THE NORTH EAST’S SUSTAINED GROWTH
Industrial Market
The industrial and logistics market in the North East has enjoyed sustained growth since 2013 as occupier demand improved. There has seen a marked decrease in Grade A availability following strong take up and little speculative development generally and this has led to rental growth over the past 5 years. Despite the Brexit result it is business as usual in many ways with occupier’s still committed to finding the right building solution, be it existing or design and build.
The dearth in available stock has meant an increased number of occupiers exploring design and build opportunities and this trend is expected to continue in 2018 and beyond. Brexit did impact on immediate occupier commitments both before and after the result as the market waited to understand the fallout. As that year progressed, though, market interest improved and there are a number of occupier’s actively seeking design and build opportunities from 30,000 sq.ft. upwards to satisfy requirements. With a number of development sites ready for development in strategic locations throughout the North
East, we are likely to see a number of occupiers sign up to new build options to satisfy their requirements.
Office Market Take up figures across 2017 for the Newcastle Office Market were reported below the 5 year average. That aside, Q1 2018 has provided for a more positive start with take up in the City Centre standing at
Keith Stewart ...we are likely to see
a number of occupiers sign up to new build options to satisfy their requirements.
71,943sq.ft, and Out of Town take up standing at a total of 132,749 sq.ft. On reflection of take up in Q1 2018 and coupled with the notable increase in the level of enquiries across the first part of the year, a more positive forecast is predicted. The supply of Grade A office
SPECIALIST BUSINESS CENTRE CONTINUES TO SPREAD ITS WINGS
he Swans Centre for Innovation, located in North Tyneside, is to expand with over £1.5 million of investment – creating space for around 10 additional businesses.
T
Since it was created in 2016, the business centre has attracted a range of organisations involved in the offshore sectors. Its enviable position within the River Tyne North Bank Low Carbon Enterprise Zone has made it an ideal base for small and medium-sized businesses specialising in the advanced engineering, sub-sea, marine, oil, gas or offshore renewable energy sectors. And now, following £1.67million of investment from the North East Local Enterprise Partnership (LEP), via the Government’s Local Growth Deal, the upper three vacant floors of the building will also be transformed as part of the second phase of the Centre for Innovation.
An additional 940sq.m of serviced office space, meeting rooms,
breakout areas and a function suite will be created, and an existing large balcony with views over the wider site and the River Tyne will be refurbished. There will also be a serviced reception facility, providing postal collection, delivery and storage and photocopying. Offices will be mostly let on flexible easy in, easy out tenancy at Will terms, with companies occupying an entire floor, taking on a lease of three years or more. The refurbishment is expected to commence later this year and be complete in summer 2019. The Centre for Innovation is a major part of a wider and on-going
£100million project, led by North Tyneside Council, to redevelop the former Swan Hunter shipyard in Wallsend. A mix of funding from the European Regional Development Fund, Homes and Communities Agency, North East Local Enterprise Partnership, private sector and council investment is being used to transform the site.
www.investnorthtyneside.co.uk,
business@northtyneside.gov.uk
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accommodation in the City Centre continues to tighten with supply finishing with a total of 175,000 sq.ft at the end of 2017. Landlords therefore are having to carry out extensive refurbishment in order to meet with Grade A demand. The next new scheme in the pipeline within the city centre is Newcastle Helix, which will provide approximately 100,000 sq.ft and is due for completion in Q4 2019. In terms of Out of Town, supply is mainly made up of existing stock, with the only new office development being on Vaux in Sunderland, which will provide 60,000 sq.ft of Grade A office accommodation.
LARGEST REGIONAL OUT-OF-TOWN LETTING FOR TWO YEARS
F
ollowing a £2 million refurbishment of its property assets at Balliol Business Park, Metnor Property Group has secured the largest out of town letting since 2016 in a deal brokered by its agents Lambert Smith Hampton (LSH). Mayborn Group,
the owners of popular baby brand Tommee Tippee, have agreed to lease the 30,000 sq.ft building known as Balliol House situated on Balliol Business Park in Benton which will become their new global headquarters when they move
by Keith Stewart MRICS Director Naylors, Newcastle upon Tyne.
L TO R) Tom Wills, Partner, Sintons LLP, Michael
Downey, Senior Surveyor, Lambert Smith Hampton and Keith Atkinson, Director, Metnor Group Limited
from their current base in Cramlington. Work commenced in early 2017 and LSH were appointed alongside Naylors to market the available space with Michael Downey of LSH commenting that: “Balliol House, as a product, stood out when Mayborn shortlisted their preferred options. Its contemporary feel and modern style has been a fantastic success story in a competitive out-of-town office market.” Keith Atkinson, managing director of Metnor Property Group, agreed that the style of refurbishment was a gamble but is delighted that it has paid off and believes it has brought new life back to the building and to Balliol Business Park in general. Mayborn is scheduled to commence its tenant fit out at the end of this month and aims to take occupation in September.
COMMERCIAL PROPERTY MONTHLY 2018
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