Naylors secures hat-trick of 50,000 sq ft lettings in Q2, 2026

The three North East industrial deals total 175,000 sq ft and span manufacturing, leisure, and logistics.

The largest of the deals, all led by industrial partner Keith Stewart, 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.

For Headlam, the new-build 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 53,000 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 turn 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, having been comprehensively refurbished following the departure of the previous occupier, APS.

Knight Frank was joint agent on Blyth and Centralway. Naylors was the sole agent on Merlin Way and Avison Young acted for the tenant.

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.”