Newcastle lags at the bottom of the big nine key cities in terms of office space under construction, a GVA survey has revealed.
With 2015 set to be a stellar year for regional city growth, commercial property adviser GVA has compiled key statistics on Grade A office markets for the top nine UK cities, to compare against each other in a property industry “top trumps” system.
Manchester and Edinburgh topped the charts in terms of Grade A take-up in 2014, on 401,406sqft and 333,351sqft respectively, while Newcastle was at the bottom on 64,000sqft, just behind Liverpool on 67,199sqft.
Edinburgh and Glasgow led the way in terms of immediately available space and Edinburgh also saw the largest leasing transaction in 2014 thanks to the 108,564sqft deal signed by Standard Life Investment, compared to Newcastle’s 28,300sqft letting to Teleperformance.
Manchester (614,000sqft) and Leeds (487,650sqft) top the heap in terms of Grade A space under construction while Newcastle lags at the bottom with just 34,000sqft under construction.
Meanwhile Manchester and Birmingham top the prime rent pile at £32 and £30 per square foot for prime Grade A space respectively, while Newcastle commands £21.50 per square foot.
Carl Potter, senior director and National Head of Offices at GVA, said: “The level of development of new offices within the UK’s regional centres has increased and this has been supported by both investor and developer sentiment; but more pragmatically is a consequence, and realisation that demand levels are clearly able to substantiate new stock.
“While this will assist in pushing out the tipping point for another year, across the UK Grade A supply has continued once again to diminish. Real levels of rental growth are back as a consequence and as demand improves further this increase will be accelerate.
“It would be fair to say that 2014 has been a year of the regional markets proving their worth, while 2015 will be the year when they truly come back into vogue.”