Office take-up in Newcastle totalled 211,000 sq ft in Q2 2026, over double Q1 and 12% higher than the 10-year quarterly average. This was driven by a significant deal at Cobalt Office Park, where Avison Young led on Northumbria Police’s acquisition of the 103,000 sq ft Cobalt 9 to operate as their new headquarters, set to open in 2027. In Newcastle city centre, the largest deal saw engineering firm Arup relocate from Central Square to 20,200 sq ft at 1 Citygate, bringing it to full occupancy.
Office vacancy in Newcastle city centre fell marginally to 9.6%. However, Grade A vacancy increased to 0.9% following the marketing of the under construction 2 Pilgrim Square, which is due for completion in 2027.
Prime rents in Newcastle remained unchanged in Q2 at £32 psf, with rent-free periods also unchanged at 20 months for a 10-year lease.