Honeycomb, The Watermark, Gateshead, Tyne and Wear, NE11 9SZ
The property provides a modern well-specified three-storey office building extending to 29,736 sqft, together with 119 parking spaces and a detached 1,996 sqft storage block
Excellent parking ratio of 1:250 sqft on the office NIA
Located on The Watermark Business Park, Gateshead's premier out of town office location
Freehold
The property is fully let to four tenants including ITV Broadcasting Ltd who have just renewed on a 10 year lease from January 2025 across 38% of the total floor area
80% of the income is secured by covenants with an Experian rating of 100/100 (Very Low Risk)
Contracted income of £411,388 per annum
Low average office rent of £13.15 per sq ft (exclusive of parking and garage) which shows a 60% discount of prime office rents in the region
WAULT of 6.3 years to expiries and 5.3 years to breaks
Chris Donabie
Interested in this property?
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Fergus Laird
Interested in this property?
Please contact me
Location
Gateshead is situated on the south bank of the River Tyne immediately to the south of Newcastle upon Tyne and forms part of Tyne and Wear.
Gateshead has an estimated population of 196,179 (ONS 2021). The wider Tyne and Wear area is home to cover 1,1,50,000 people and is the primary urban centre of the North East England.
The North East Combined Authority was formed on 7 May 2024, with c. £600m in central government funding allocated to the area through December 2023 devolution deal. Gateshead has seen considerable inward investment in recent years with Gateshead Council to invest £260m into housing over the next 5 years.
The property is situated on a self-contained riverside campus in a prominent position within The Watermark, one of the principle business locations in the Tyne conurbation.
The Watermark scheme comprises approximately 220,000 sqft of modern office buildings, which were developed in the mid 2000s and is home to a number of major companies including Synergi, Handelsbanken, NEC, Riverside Group, Teleperformance and Barratt Homes.
The Watermark is also situated close to the Metrocentre, the second largest shopping centre in the UK. The centre features over 300 shops, 68 restaurants, an extensive neighbouring retail warehouse offering Odeon IMAX Cinema.
Within The Watermark development there is a range of amenities for its workers including Cafe Meo's, truGym and Made Barbers.
The property is located 0.5 miles north of Junction 71 of the A1 and 0.5 miles north west of the Metrocentre Railway Station and Bus Interchange, providing excellent transport links.
Description
Honeycomb is a prominent modern purpose built office extending to 29,736 sq ft. The property was constructed in 2004 and provides well specified office accommodation over ground, first and second floors. The building offers excellent configuration with 'L' shaped floor plates arranged around a central service core providing flexibility for division. The first floor has been subdivided to provide smaller office suites extending between 870 sq ft to 4,690 sq ft.
Externally the property provides a total of 119 car parking spaces, equating to an excellent parking ratio of 1:250 sq ft on the office NIA. There is also a detached storage building/garage which is let and occupied by ITV who use it as archive storage.
The building has been very well-maintained by the current owner. Recent works include the installation of four new chillers, a recently installed BMS system and various external maintenance works to the roof and windows. ITV have invested significantly in the building with the recent installation of a secondary fibre connection point for their broadcasting requirements.
Specification
- Full height glazed atrium
- New LED lighting
- Air conditioning
- Raised floors
- Male, female and disabled WC and shower facilities on each floor
- Flexible configuration
- 2 x 8 person (630kg) passenger lifts
- Cycle storage
- 24/7 access
The property extends to a total of 31,732 sq ft (2,948.0 sqm) comprising 29,736 sq ft NIA (2,762.56 sqm) of high specification office accommodation over ground and two upper floors and a single storey garage block that extends to 1,996 sqft GIA (185.4 sqm).
The property benefits from extensive onsite parking provisions with 119 car parking spaces (1:250 sqft on the office NIA).
Terms
The title includes the riverbank and public footpath to the rear of the property and the neighbouring Tyne River House. The footpath is adopted and maintained by the local council under the Highways Act.
The property is fully let to four tenants producing a contracted income of £411,388 per annum. This reflects a low average office rent of £13.15 per sq ft (exclusive of parking and storage).
The property has a WAULT of 6.3 years to expiries and 5.3 years to breaks.
37% of the total income is secured against ITV Broadcasting Ltd on a new 10 year lease from 1 February 2025.
