For many years following the 2008/09 global financial crisis, next to no new grade A office accommodation was delivered in Newcastle-upon-Tyne. It was a source of great frustration, not just to office agents operating in the city, but also to occupiers seeking best in class space.
However, the situation is starting to change, with several developments due to be completed imminently. The market is not about to be flooded with space, but companies can at least look forward to a few options that should meet their requirements. Below, we profile some of the most prominent projects.
Pilgrim Street
Pilgrim Street comprises a 10-acre regeneration site adjacent to the retail core in the heart of Newcastle city centre. It is one of the most strategically important and transformational sites in the north of England.
Delivering nearly 1m sq ft of accommodation, the project includes more than 750,000 sq ft of grade A office accommodation, a new public square, a new luxury hotel development and an extensive food and drink offer.
To the south, Bank House comprises a 12-storey, grade A office building offering 360-degree views of the Newcastle skyline. The building completed in Spring 2023 and is now over 60% occupied.
To the north, meanwhile, construction works are advanced on Pilgrim’s Quarter which is set to become the new home to 9,000 HMRC staff and is the largest of 13 new regional centres being created across the Government Hub network. It is hoped that the development will have a major impact on Newcastle city centre, not least Northumberland Street’s retail offer.
Elsewhere on Pilgrim Street , preparatory works are underway on Pilgrim Place, a 263,700 sq ft grade A office development. The former police and fire stations in the centre of the regeneration area are also being transformed into a new boutique hotel, while Worswick Chambers is being converted into a leisure and hospitality destination, due to complete in early 2025.
2 Pilgrim Place, Pilgrim Street, Newcastle Upon Tyne, NE1 6XA
Founders Place
In April this year, a partnership comprising igloo Regeneration, Thriving Investments (part of the Places for People group) and Newcastle City Council unveiled the name of its £137m regeneration scheme in the heart of Newcastle.
In a nod to its rich industrial past, the four-hectare scheme located in the Stephenson Quarter to the south of Central Station was named Founders Place due to the fact that it was originally the location of the workshops and site offices of Robert Stephenson & Company, the first business in the world to specifically design and build locomotive steam engines.
Pre-let partners are being sought for The Pioneer, a landmark office building that forms the gateway to Founders Place and will offer 100,000 sq ft of environmentally sustainable space over 10 storeys, including outdoor terraces and views across the city. The building was designed by RIBA Stirling Prize-winning architects Allford Hall Monaghan Morris and has been designed as BREEAM ‘excellent’.
Future phases across Founders Place include Orchard Yard, the Railyards and Coppersmith Shop, which combined will provide a mixed-use opportunity for residential, creative workshop hubs, a destination restaurant and retail businesses.
“We’re looking forward to hearing responses to our shared vision from the market,” says Insiyah Khushnood senior development manager at igloo. “The creative, pioneering founders from the area’s past and the heritage legacy of their work is an incredible starting point for any new scheme, and we felt it was important to retain the heart and soul that makes the area so special for today’s founders.”
She adds: “It’s the strongest signal yet that Newcastle is proudly and successfully combining its rich heritage with cutting-edge work spaces designed for a talented and dynamic workforce. Anyone who has the privilege to work here will know they are part of something special that’s connected to entrepreneurs of the past but with eyes firmly fixed on the future.”
Agent Knight Frank has been appointed to secure pre-let partners across Founders Place.
Pattern Shop, Founder’s Place, Newcastle upon Tyne, NE1
“Occupiers are focusing their property requirements on highly sustainable, inspiring work spaces,” says partner Patrick Matheson.
“Occupiers are focusing their property requirements on highly sustainable, inspiring work spaces. As more staff return to shared offices, either full-time or in hybrid roles, we know employers want to offer superior spaces that will enhance their employees’ working experience and wellbeing.”
He adds: “The collection of buildings that make up Founders Place have an enviable heritage and character that is evident across the whole development. It offers superb work options in the very heart of Newcastle city centre with the strongest of eco-credentials.”
The wider area surrounding Founders Place already plays host to the Central Square office development, the Crowne Plaza hotel and spa and The Boiler Shop music and events venue.
Wellbar Central
Not all new space in Newcastle is technically new. In line with trends seen across the UK post-pandemic, occupiers in the city realised that while they need less space due to changes to working patterns, they want the space to be had to be best in class, particularly when its comes to a building’s green credentials.
As a result, many landlords are investing to bring existing stock up to the standards the market is demanding. Wellbar Central in Newcastle city centre is a case in point. There, owners Orchard Street, which acquired the building in 2015, recently initiated a £1m programme of works to elevate the building’s environmental profile, including the installation of new heating, ventilation and air conditioning systems.
The strategy is clearly working. In June, it was announced that law firm Eversheds Sutherland had signed a lease for the eighth floor of at Wellbar Central. “The significant investment that is being made in Wellbar Central is having the desired effect in attracting aspirational occupiers who are looking for best in class office space,” says Matheson, who is marketing Wellbar Central alongside joint letting agent Savills.
Wellbar Central, Gallowgate, Newcastle Upon Tyne, Tyne and Wear, NE1
Wellbar Central is already home to high-profile organisations such as law firm Irwin Mitchell, Global Radio, Turnitin and Sky, as well as XPS Pension Group and Advance Business Software, and comprises 118,000 sq ft of grade A office accommodation.