Three lettings within a month as rental levels climb at Newburn Riverside
New leases have been agreed on three industrial units at Newburn Riverside by Newcastle-based commercial property specialist Naylors Gavin Black and their joint agent Avison Young.
The new lettings, which were all concluded in September, have seen rents climb to a new high of £6.50/sq.ft. as the region’s industrial property market continues to shine. The estate’s landlord, Aegon Property Income Fund, acquired Newburn Riverside in 2015 as part of a strategic investment in the North East.
The largest deal has seen a 22,200 sq.ft. unit let on a 5 year lease to the builders’ and plumbers’ merchant, M Markovitz Ltd. Newburn Riverside was identified as the preferred location for their first venture into the North East and the site will specialise in dry lining and insulation supplies for major construction projects across Tyne and Wear, Northumberland, Cumbria and Teesside.
The firm employs over 300 people across eighteen sites, with 15 new jobs being created at Newburn.
David Hopkins, Markovitz’s CEO said: “We are delighted to be establishing our first foothold in Newcastle-upon-Tyne and we feel the Newburn site is ideally placed to give excellent links right across the region. We are now fully operational and very much looking forward to building strong trading relationships in the area”.
Markovitz is set to open outlets in Ipswich and Glasgow over the next two months as part of plans to grow their current operation to the whole of the UK.
Further deals have seen Citron Hygiene sign a ten year on Unit C2 and Sirius Technologies move to Unit B3 at Newburn as part of their relocation from Airport Industrial Estate.
The Building Consultancy team at Naylors Gavin Black recently concluded a dilapidations and refurbishment project on B3 ahead of the letting to Sirius Technologies and also to D1 which is now the final unit available.
Keith Stewart, partner at Naylors Gavin Black said: “Demand for good quality industrial space in well-located areas remains very healthy and that is why Newburn Riverside has seen a high level of letting activity and rental growth in recent months.
“We now only have one unit remaining which offers 11,600 sq.ft and we anticipate a swift letting within the months ahead.”
Located to the west of Newcastle city centre, Newburn Riverside lies on the north bank of the River Tyne and extends to over 22 acres. It was built between 2002 and 2006 as part of a regeneration programme by former RDA, One North East and is currently home to the NHS, Stannah Lifts, Pajunk and MacFarlane Group.