Avison Young Big Nine Report
24 Feb 2020
The latest Avison Young “Big Nine” report shows total take-up across the Big Nine office markets (Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle) amounted to 8.8 million sq. ft. in 2019, 3% above the ten year average and comparable to 2016, a year that was similarly dominated by political uncertainty.
The final quarter of the year also saw the second largest out-of-town transaction of the year, the sale of eight buildings at Quorum Business Park in Newcastle for £32 million to Shelbourn Asset Management.
Newcastle has seen dramatic change over the last ten years and is now a vibrant hub for business and culture. The continued regeneration of the city will enable further evolution and growth, and we expect a positive year for Newcastle. The city centre will see the largest number of office developments delivered for a number of years.
The next 12 months will see the largest number of office developments delivered in Newcastle city centre for a number of years. These schemes will offer significantly more choice to office occupiers, providing opportunities for north-shoring and inward investment companies.
Avison Young are aware of more than 150,000 sq. ft. of requirements currently looking for 25,000 sq. ft. plus of space. Speculative development in small to medium sized industrial units remains fairly muted whereas those schemes which have come out of the ground have performed well.
Overseas investment demand has increased in Newcastle which is recently demonstrated by business park acquisitions. The final quarter of the year also saw the second largest out-of-town transaction of the year, the sale of eight buildings at Quorum Business Park in Newcastle for £32 million to Shelbourn Asset Management.
At the landmark Newcastle Helix development (formerly Science Central), The Lumen office building (106,000 sq. ft.) will complete early this year and the next phase of the scheme, The Spark (107,000 sq. ft.), will complete in 2021.
This represents one of the biggest urban regeneration projects of its kind in the U.K. and will provide an exceptional platform for Newcastle to succeed as a major hub for science and enterprise. One of Newcastle’s great strengths is its knowledge economy, with the fastest growing software and technology market in England.
Other well progressed developments in Newcastle include the first phase of the long awaited East Pilgrim Street regeneration area, with the 120,000 sq. ft. Bank House office scheme by Taras Properties starting on site in the spring. A planning application has also been submitted for the adjoining Pilgrim Place which can accommodate a further 380,000 sq. ft. of office space.
Tony Wordsworth, Director, Avison Young said, “Newcastle City Council is looking to appoint a developer for the second phase of the mixed use Stephenson Quarter. These schemes will all go towards redressing the balance with the dominant out-of-town market in Newcastle. They will offer significantly more choice in the city centre to office occupiers, providing opportunities for north-shoring and inward investment companies.”