Newcastle upon Tyne is a port on the north bank of the River Tyne, with Gateshead on the south bank. The city and its river fuelled the industrial revolution and the golden age of coal, iron and steam which included the birth and development of the railways from waggonways in the 18th century. Newcastle has a heritage from the great wealth of it's Georgian and Victorian past and the buildings of this period, many by Richard Grainger are second only to those in London or Bath. Today the city has reinvented itself as a player in the service and mixed economy with a little of the old heavy manufacturing and engineering left.
Retail Property in Newcastle
The wide streets and quality of the architecture makes Newcastle City Centre a popular destination for retail therapy. Newcastle is the ninth largest shopping destination in the UK and the principal shopping street is Northumberland Street, supported by the recently extended Eldon Square Mall which is anchored by John Lewis, Grainger Market, and Monument Mall. The East Pilgrim Street area at the bottom of Northumberland Street is the focus of new development activity. Headline rents in the prime Eldon Square Mall would be £275psf. Out of town Metrocentre, the largest entirely indoor shopping centre in Europe, is less than a ten-mile drive from the centre of town.
Office Property in Newcastle
The office stock is focussed in the city centre, where a stock of recently built offices of all sizes line each bank of the Tyne, backed up by accessible business parks on the fringe of the City, typified by Quorum, which recently attracted Tesco Bank and Balfour Beatty as tenants. The office market in Newcastle is characterised by generally lower rents than in similar cities elsewhere in the UK, with maximum headline rents at £20psf and figures half that being achieved for quality space.
Out of town there is still speculative office development taking place in former Enterprise Zones, where headline rents of £16.95 are typical for new Grade A space. Stock is in abundant supply.
Property Development in Newcastle
There are several strategic development sites such as Science Central, a city-centre, 24-acre mixed-use development with a science emphasis, and the Stephenson Quarter, where 375,000sqft of Grade A space is planned. A 21 hectare site in the Gateshead Quays area within the Accelerated Development Zone, has a masterplan to deliver up to 1.5 million sq ft of urban office accommodation. The site is already home to the new Gateshead College Campus and the regional HQ for the Open University.
Industrial Property in Newcastle
In the industrial market, demand is underpinned by strong manufacturers like Nissan who suck in their second tier suppliers who take space nearby to support the manufacturer. There is a shortage of good quality stock, as speculative development has not taken place for several years. In the North East market around 17 million sq ft of foorspace is available representing around 3 years supply. Headline rents are around £5 psf for prime property in Newcastle down to £4psf in Stockton-on-Tees.
Leisure and Hospitality Property in Newcastle
Visitors to Newcastle may arrive at the splendid listed Central Station, next to which is a 10 acre site where 2 hotels, an art gallery and exhibition centre, together with offices restaurants retail and residential are to be built. Opposite this on Gateshead Quays, a string of ambitious projects have already been completed, including Millennium Bridge, The Sage Gateshead and Baltic Centre for Contemporary Art, and further developments aim to include residential apartments, restaurants and cafes, retail units, and a 3,000 sq metre Conference and Exhibition Centre is proposed. Newcastle presently has around 2650 hotel rooms with a typical occupancy of 74% and a RevPar of £45.55. There is also a strong supply of guest houses using the elegant Georgian houses to cater to a variety of tastes.
You may want to consider some of the following points as you carry out your search for commercial property in Newcastle upon Tyne. If you require finance to fund a commercial property purchase it is often best to seek some advice from a commercial mortgage broker to ensure that you are likely to be able to secure a loan for the portion of the offer amount, as banks are being very careful over how much they lend, and who they lend to. There are of course other factors which you should consider before making an offer on a commercial property, the trick is to do your research thoroughly before entering into any agreement.