Naylors secures hat trick of major industrial lettings in strong Q2 for agency team

Commercial property consultancy, Naylors, has completed three significant industrial lettings totalling almost 175,000 sq. ft. during the second quarter of 2026, underlining continued demand for high-quality industrial and logistics space across the North East.

The transactions, all led by industrial partner Keith Stewart, include lettings to Headlam Group plc, Project Padel and national logistics company 3PL, representing a combined total of almost 175,000 sq. ft. of occupied space.

The largest of the deals saw Naylors secure the letting of Centralway 65, a newly developed 65,000 sq. ft. industrial unit on Team Valley, to Headlam Group plc on behalf of UK Land Estates.

The new-build attracted strong interest from the market, including two other high-profile occupiers, demonstrating both the quality of the development and the continued strength of demand for prime industrial accommodation in the region.

For Headlam, the property provides the right facility to support its ongoing investment in and future-proofing of its operational estate.

The second transaction involved the letting of a 52,972 sq. ft. warehouse in North Tyneside to Project Padel on behalf of Columbia Threadneedle.

Following a complex change-of-use process, the fast-growing leisure operator will transform the building into the largest indoor padel facility in the North East. Scheduled to open this summer, the venue will feature eight double padel courts, three single courts, two pickleball courts, a gym, spa, reformer studio, bar and social workspace facilities.

The third deal saw Naylors complete the letting of a fully refurbished 57,000 sq. ft. industrial unit in Blyth to national logistics company 3PL on behalf of Mileway.

The property was let just six weeks after refurbishment works were completed, significantly ahead of the typical three to six months often required to complete an industrial letting. The building had been comprehensively refurbished following the departure of the previous occupier, APS.

Keith Stewart, managing partner at Naylors, said: "Securing three lettings of more than 50,000 sq. ft. in a single quarter is an excellent result and reflects the resilience of the North East industrial market.

"Whilst there remain headwinds in the marketplace, deals are still being secured for the right properties in the right locations. Transactions are taking longer, with enhanced due diligence from occupiers to ensure the fundamentals stack up but these lettings demonstrate the continued demand for well-located, high-quality and adaptable space.

"The letting of Centralway 65 attracted significant interest from multiple occupiers, highlighting the appetite for best-in-class industrial accommodation. The Project Padel transaction demonstrates how existing industrial buildings can be successfully repurposed to support evolving occupier requirements, while the Blyth letting shows the value that high-quality refurbishment can bring to the market.

"On average, completing an industrial property letting deal in the UK typically takes three to six months, so to secure the Blyth transaction within six weeks of the refurbishment completing was a fantastic outcome. The quality of the refurbishment and the location were the key selling points."

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