The cranes are back on the Newcastle skyline, helping to deliver the new commercial space that’s needed if the fast-growing city is to keep up with its competitors.

Newcastle is in a strong position – it’s becoming more prosperous, recording a 26 per cent rise in earnings between 2007 and 2017, house prices are relatively affordable, there are high levels of housing delivery and significant city centre regeneration. 

However, the business start-up rate per capita is lower than in comparable UK cities which may be due in part to the lack of appropriate modern premises required to attract new occupiers. The 2010-2030 Core Strategy identifies the dated nature of some of the city’s office stock as a challenge.

Grade A office space has been depleted after a decade of limited development and the loss of a number of buildings to retail, leisure and student accommodation. At 175,000 sq ft supply is now 15 per cent below the 10-year average and importantly none of this is new build.

Funding for speculative commercial development in Newcastle has been very restricted. One way to deliver new space is through mixed use regeneration schemes, where the different uses limit the amount of exposure to a single sector, and that’s what we are starting to see take shape here. 

Innovative approaches have been key to unlocking sites and the city council has made good use of wraparound leases to support office development such as the 100,000 sq ft office block at the Helix scheme, due for completion in the second half of this year, which will help make a dent in the Grade A shortfall.

Even so, there is a clear need for more high-spec, serviced and flexible Grade A offices in the urban core to support the ambitious emerging technology and media sectors. Without it, the continued growth of the city – an important economic hub for the wider North East region – could be impeded.

Further information

Read more: Newcastle: A north eastern powerhouse