By Nick Atkinson is Director at HTA Real Estate and joint agent on Integra 61 with Avison Young and Colliers International

The North East industrial market is in a much stronger position as we head towards the last months of the year, with the figures for Q3 2025 showing that double the amount of deals were concluded during this period than in the whole of H1 this year. Figures are for all industrial transactions over 50,000 sq ft.

Six deals totalling over 0.9 million sq ft were completed in Q3 2025 which was a significant improvement on the results for Q1 and Q2 combined which delivered three deals with a total of 0.25 million sq ft.

This pattern is reflected across the UK with data showing that Q3 was the second strongest quarter in terms of ‘Big Box’ take-up in the last two years, with 8.3m sq ft transacted across 31 deals representing an 11% increase on the quarterly average since the end of 2022.

While retailer occupiers have predominantly led the UK take-up, looking at the floor area taken in the North East this year, 70% has been for manufacturing with five out of the nine deals in this sector and the remaining four deals for storage and distribution. This reflects the buoyant North East manufacturing market and is a trend we expect to continue for the remainder of the year.

In terms of transaction size, five of the nine 2025 North East deals have been between 50,000 sq ft – 100,000 sq ft, such as the letting at Connect 63 at Integra 61 to Connect Flooring. The remaining four have been over 100,000 sq ft, the largest being 389,997 sq ft on an older secondary building leased for a recycling use.

Rents are holding up across the board and continuing to grow in some locations and size ranges which is positive news for logistics investors and developers. Almost all recent development in the region has been either bigger units of 50,000 sq ft upwards or small units of 1,000 – 5,000 sq ft. Therefore, modern units of 5,000 to 50,000 sq ft with good specification and dedicated service yards are in short supply. These units are in strong demand, and rental growth is highest in this size range.  Units of this size can be delivered at Integra 61 on the Optima and Evolution sites.

The recent figures indicate growing momentum in the North East industrial logistics market, a sector which has such an important role to play in the region’s wider economic prosperity.