Office take-up in Newcastle totalled 98,800 sq ft in Q1 2026, 29% below the previous quarter and 48% below the 10-year average. This was largely due to no deals in excess of 10,000 sq ft being recorded, with take-up of smaller sizebands sitting within historic averages.
The largest city centre deal was at 44-51 Grey Street, where Waste Managed expanded their space taking 7,998 sq ft on the 3rd and 4th floor in the building.
Office vacancy in Newcastle rose 138 bps over the quarter to 9.7% due to the release of secondary space, with grade A vacancy instead falling sharply to 0.6% to sit amongst the lowest levels in the Big Nine.
Office prime rents in Newcastle remained at £32 per sq ft over the quarter. Rent free periods also remained at 20 months for a 10-year lease.