Naylors completes major industrial lettings in North East

Naylors, which led the deals, secured a combined total of almost 175,000 sq ft through transactions involving Headlam Group plc, Project Padel, and national logistics company 3PL.

The largest letting was for Centralway 65, a newly developed 65,000 sq ft industrial unit on Team Valley.

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.

Commercial property consultant Naylors has completed three major industrial lettings across the North East during the second quarter of 2026, securing almost 175,000 sq ft of space for Headlam Group plc, Project Padel and logistics firm 3PL (Image: Supplied)

“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 Team Valley unit was let to Headlam Group plc on behalf of UK Land Estates.

It attracted strong interest from multiple occupiers, highlighting ongoing demand for prime industrial accommodation.

Mr Stewart said: “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.”

The second deal saw Naylors secure a 52,972 sq ft warehouse in North Tyneside for Project Padel, acting on behalf of Columbia Threadneedle.

Following a complex change-of-use process, the leisure operator will transform the site into the region’s largest indoor padel facility.

Scheduled to open this summer, the centre will feature eight double padel courts, three single courts, two pickleball courts, a gym, spa, reformer studio, bar, and social workspace.

The third letting involved a 57,000 sq ft refurbished unit in Blyth, let to logistics firm 3PL on behalf of Mileway.

The deal was completed just six weeks after refurbishment—significantly faster than the standard three to six months typically required for an industrial letting.

The unit was upgraded following the departure of previous occupier APS.

Mr Stewart said: “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.”

Knight Frank acted as joint agent on the Blyth and Centralway lettings.

Naylors was the sole agent on the Merlin Way deal, while Avison Young represented the tenant.