North-east rents driven by limited commercial space - commercial mortgages

18 October 2006

Rental values for commercial space in Gateshead have increased significantly during the last year due to limited available properties, according to icnetwork.

The market for people with commercial mortgages in a number of areas in Gateshead has experienced rental growth of 20 per cent, particularly in industrial property.

According to Naylors Chartered Surveyors, rents have increased from £1 per sq ft to between £5.50 and £6 per sq ft due to a shortage of space available for new developments.

Keith Stewart from Naylors told the network: "While we are experiencing a rise in the number of business start-ups across the region, there is little or no new development in Gateshead."

The latest monthly index of commercial property, published by the Investment Property Databank, indicates that industrial property in the UK experienced rental growth of 0.1 per cent during September.

Office space continued its strong growth with rental values increasing by 0.9 per cent last month.