Office rents on Newcastle's Quayside have broken through the £30 per sq ft barrier for the first time, marking a watershed moment for the North East's commercial property market. The milestone was achieved at The Lumen, a newly completed 85,000 sq ft development by Landid, where a technology company has taken the top two floors at £31.50 per sq ft.
The achievement is significant for a market that has historically been constrained by relatively low rental levels, which in turn limited the viability of speculative new-build development. The breakthrough suggests that occupier demand for best-in-class space is now sufficient to support premium pricing, potentially unlocking a pipeline of new development projects.
Newcastle's office market has been quietly strengthening, with take-up reaching 480,000 sq ft in 2025 — a 22 per cent increase on the five-year average. The technology sector has been the primary driver, with firms including Sage, Accenture and a growing cluster of fintech companies expanding their presence in the city.
The city's relative affordability compared with other regional centres remains a key selling point. At £30 per sq ft, Newcastle rents are roughly half those in Manchester and a third of prime Edinburgh levels, offering occupiers significant cost advantages while still accessing a deep talent pool.
