The improving sentiment in Newcastle city centre office market that has been apparent throughout the year continues with the latest market commentary published by Knight Frank.
This shows the take-up in Newcastle up by 95% on a year-on-year comparative basis.
Patrick Matheson, partner in Newcastle office agency, says there has been a distinct and sustained confidence in the office agency market.
Matheson said: “We are seeing increased demand and this is being reflected in better returns.
“Our investment colleagues have seen a very clear improvement and a much-improved appetite from the funds for investments in the region.
“This is being seen through improved and record yields which is great for the commercial property market.
“As 2013 approaches its end, we feel that we can look forward with confidence to 2014 being an improving office market for Newcastle and the region.”
The healthy level of activity is predominantly characterised by smaller deals on the back of the increase in general enquiries, he said.
With the supply of Grade A space in the city centre ever decreasing, the development activity on Silverlink’s Stephenson Quarter, which is adjacent to the city’s Central Station, and Hermes’ redevelopment of The Pearl building in the city centre are very positive signs for the sector.
“The timing for both are very good indeed,” added Matheson.