City can compete with Newcastle

May 14 2008 by Graeme King, The Journal

Sunderland's city centre office market has historically struggled to compete with the more mature market in Newcastle, but Mike Cuthbertson believes some interesting schemes could challenge the status quo.

UNUSUALLY for a city of its size, there has been no significant office development in Sunderland city centre for more than 20 years.

Recognising that the market was failing, the Government attempted to kick start office development in Sunderland city centre in the 1990s.

Gilbridge House and Shackleton House were developed for HM Revenue and Customs. At the end of last year, the decision to close both buildings was an admission of failure by the Government and a blow for Sunderland – 430 jobs were lost.

Despite this depressing picture, the city could be transformed if exciting proposals go ahead. New office jobs will undoubtedly increase demand for city centre retail, leisure and residential property giving a boost to regeneration across the city.

First off the drawing board will be Farringdon Row. Sunderland arc has appointed CTP as preferred developer for their £130m scheme in the north west of the city centre, with 70,000sqft of grade A offices as part of a mixed use scheme which will include a new hotel.

Next up is Vico Developments’ City Green scheme which is looking to secure a pre-let. It will bring 50,000sqft of offices to a prominent site close to the Civic Centre. The scheme which has the potential to truly establish Sunderland’s city centre office market is the arc’s vision for the Vaux site, to include over 500,000sqft of high quality office space.

The site is undoubtedly the key development which could shape the future of the city centre for decades to come.

All the above schemes have been boosted by Sunderland’s plans to have a new £50m courts complex in the city centre. The building will be in operation by 2012 and is likely to attract a cluster of legal firms around it.

If these exciting schemes are delivered, then it will not just be on the football pitch that Sunderland will be aiming to compete with Newcastle.

Mike Cuthbertson is executive director of GVA Lamb and Edge