6 commercial leases results

Newcastle is situated on the banks of the River Tynes, around 170 km away of Edinburgh. It is the most densely populated area in North East of the country. A metropolis has a profound and diverse economy. Its strongest points are technological, digital, and retail spheres. The tertiary sector is well-developed too. Despite the uncertainty around Brexit, the commercial real estate market in the region has positive forecasts for its development. Newcastle, in particular, faces the growing demands for industrial, retail and office units of high-quality. The rapidly changing requirements of occupiers make the landlords refurbish the already existing stock into modern highly-serviced spaces with additional amenities for the tenants’ well-being. In addition to office space, retail development occupies an essential place in the urban development of the city. The authorities desire to improve the quality, quantity, and range of commercial provision by increasing the amount of retail by 50 thousand sq.ft. The main focus is put on the investment in the flexible format of shops and malls. The majority of corporations, as well as the commercial properties for rent, are located in the CBD of Newcastle. Municipal, industrial, and retail functions stay in the medieval town, between the Town Moor and the Tyne.

The demand for commercial properties in Newcastle is mainly focused on the city’s elite locations, such as its central part. Nowadays the metropolis’s heart hosts around 175 thousand of Grade A office space, another 107 thousand are on construction. At the same time, the area suffers from the lack of the appropriate industrial stock. Despite the relatively large numbers of industrial units, only several of them can be related to newly-built venues. They mainly occupy less than 20 thousand sq.ft. Rents for prime commercial properties in Newcastle increased. The fees for offices reached the point of GBP23,5 per sq.ft. The rental of industrial buildings is much cheaper - GBP7,45 - 8 respectively.

The metropolis becomes more and more prosperous, boasting growth in earnings by 26% within the last decade. The local authorities implement a range of pro-development projects which promotes housebuilding, investments in new business spheres and social sectors. In the previous year, around GBP27 million of venture capital was invested in firms that have their HQs in the city. As a result, the area outperformed Leeds, Glasgow and Birmingham. Thanks to the regional great economic potential, a high percentage of students wish to live and work there after graduation.