The North East’s industrial property market has been boosted by a series of lettings.
A trio of lettings at Newburn Riverside in Newcastle were agreed last month, led by a deal for a 22,200 square foot unit sealed by builders’ and plumbers’ merchant M Markovitz Ltd.
The firm has agreed a five-year lease in a move which see it expand into the North East for the first time and create around 15 new jobs.
The merchant, which employs more than 300 people across 18 sites, will specialise in dry lining and insulation supplies for major construction projects across Tyne and Wear, Northumberland, Cumbria and Teesside from its new Newburn base.
David Hopkins, Markovitz’s CEO, said: “We are delighted to be establishing our first foothold in Newcastle 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.”
Further lettings have seen Citron Hygiene sign a 10-year on Unit C2 and Sirius Technologies move to Unit B3 at Newburn, as part of its relocation from Airport Industrial Estate.
The Newburn deals, which were concluded by commercial property specialist Naylors Gavin Black and their joint agent Avison Young, have seen rents climb to a new high of £6.50 per square foot.
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.”
Meanwhile a 39,847 sq ft industrial building in Darlington has been let to flooring specialist, the CreateCity Group.
The Shildon based company, which operates the Franks The Flooring store brand amongst others, has taken a lease on Unit 1 Roundhouse Road at Faverdale East Business Park in Darlington.
The deal was completed by the Newcastle office of Cushman & Wakefield and joint agents Naylors Gavin Black on behalf of IPIF (Industrial Property Investment Fund) and was agreed and completed within four weeks. Connect Property North East acted for the tenant.
CreateCity Group will be using the unit as warehousing for their expanding business.
John Gods, from CreateCity, said: “We’re pleased to have been able to open a new warehouse in Faverdale. It’s location just off the A1 is perfect and provides us with more space for our products as we continue to expand our operations.”
Richard Scott, partner in Cushman & Wakefield’s logistics and industrial team in Newcastle, said: “We are delighted to have been able to secure a strong local occupier for the unit at Faverdale. The fact the transaction was completed within four weeks and during lockdown is evidence of the strength of North East industrial market even in uncertain economic times.”
