The North East real estate market has experienced “phenomenal growth” and bounced back strongly from the challenges of operating throughout Covid, according to new data.
Commercial real estate technology platform Coyote Software collected data from 109 assets and 1,200 leases to provide insights into how the region’s property market has fared following the easing of Covid-19 restrictions.
The study compared the last 12 months with the last five years and found that industrial transaction size increased by 24 per cent.
The average industrial transaction across the last five years was £2.17m, alongside the average office transaction of £5.99m.
The data found that price per square foot for office transactions increased by 11 per cent, but dipped two per cent for retail transactions.
Elsewhere, the average industrial lease length decreased by five per cent, but office leases increased by two per cent, and retail by six per cent.
Oli Farago, chief executive of Coyote Software, said: “The real estate market has bounced back strongly from the challenges of operating under Covid restrictions and the North East market is no exception.
“Despite concerns that the emergence of hybrid working might stymy the growth of the office market, average transaction size, lease lengths and price per square foot have all increased. The rise of the industrial sector has been well documented, but here again the North East has seen phenomenal growth – particularly when it comes to transaction size.
“It’s also encouraging to see that lease lengths in the retail sector have increased.
“Ultimately, what’s abundantly clear from this latest data is that the market continues to change. It is vital that as investors and operators survey the picture across the North East, they have immediate access to live, accurate and detailed data that supports their decision making and planning.”
This article originally appeared on Insider Media on 29th April