⭐ Q1 2025 North East Office Market Report ⭐

🚀 In the current North East office market, the average deal size in Newcastle city centre stands at 5,046 sq ft, while out-of-town deals average 3,449 sq ft.

💡 In the city, smaller occupiers, particularly those seeking spaces under 2,500 sq ft, are increasingly favouring fully serviced office options.

🌱 In the context of traditional Category A lettings, sustainability has become a critical focus, as tenants increasingly prioritise offices that are fully electric or de-gassed and meet high energy efficiency standards, specifically those with a minimum Energy Performance Certificate (EPC) rating of A or B. This shift reflects a growing awareness of environmental impact and a commitment to reducing carbon footprints in the commercial real estate sector.

📈 In the first quarter, a significant 95.7% of all lettings in the city centre for spaces exceeding 2,500 sq ft were in buildings with EPC ratings of A or B, demonstrating the strong trend towards energy efficiency, even when excluding the DWP letting.

💡 Among the 30 transactions recorded in the out-of-town market this quarter, there is a notable demand for self-contained ‘own front door’ offices; however, the appeal for multi-occupied out-of-town spaces persists, especially if landlords enhance on-site amenities such as business lounges, shower facilities, and gym studios.