Brexit Speculation Showing Impact as Newcastle Office Take Up Falls

Posted on 20 April, 2016 by Chris Grigorovsky

Brexit uncertainty has once again caused concern in the commercial property market, as Newcastle saw its occupier market slowdown in Q1 2016 and leasing activity fall dramatically, Lambert Smith Hampton research reveals.


The firms latest Newcastle Office Market Pulse has shown that occupier deals in the city’s central office market saw a decrease to 29,250 sq ft, which represents a 39% fall compared to Q1 2015. While out-of-town take-up fell by 43%.

Research also revealed that there were 16% fewer deals across the region, with the average transaction size falling from 6,799 sq ft to 4,668 sq ft.

Newcastle’s investment market has also seen a slow start to 2016, with investors taking a more cautious approach due to Brexit. Volumes of investment slowed down in Q1 to £35 million, compared to the previous quarter which was £62 million.

High volumes traded in the previous quarter have reduced the number of tradable assets available to investors and as a limited supply of new stock is coming, investor appetite in Q2 will continue to slack.

Director of Agency and Investment at LSH’s Newcastle Office, Neil Osborne, said regarding Q1’s results: “A perceived lack of certainty ahead of the EU referendum on 23 June is clearly beginning to impact commercial property levels in Newcastle and the surrounding region.

“Our Q1 report indicates that both occupiers and investors are keeping their cards close to their chest until it is clear what the possible impact of a Brexit might mean for them. We believe that as more clarity emerges, we should see more deals taking place towards the tail end of the second quarter.”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme