Commentary
‘The North East doesn’t have to miss out’ | Q&A with Metrocentre’s Ben Cox
In the year the 2m sq ft shopping centre turns 40, Place North East caught up with the director at Sovereign Centros from CBRE, the mall’s asset manager, to discuss how the Gateshead destination is changing to drive footfall, dwell time, and spend.
What is the current leasing strategy for Metrocentre, and how has it evolved post-pandemic?
Our leasing strategy has been strategically re-focussed post-pandemic, adopting a more experience-led approach to align with evolving retail and consumer trends. We’ve shifted from what would have been a more traditional leasing programme to one that offers a more diverse mix of retail, leisure, food, and non-retail uses. It essentially brings more high street functions into a ‘shopping centre’ environment, which is typically found to be safer and a better experience. That’s what will drive footfall, dwell time, and – ultimately – spend.
We’ve re-anchored the centre with strong retailers, and have introduced alternative uses such as Everlast Gyms, leisure operators like Activate and The Escapologist, and a whole host of new store re-fits and refurbishments. This delivers a better shopping experience for visitors, always providing the most up-to-date store formats, so our customers in the North East don’t have to feel like they’re missing out compared with other regions.
We have also brought in international brands that haven’t historically had much of a presence in the North East, such as a growing roster of Inditex labels, and so on.
Our NHS Community Diagnostics Centre has been a landmark addition, as we look to make healthcare more accessible and convenient for the community. It has transformed the way that visitors use our spaces, enabling the opportunity to cover off everything in one trip.
We are now very much a multi-use, community-centred space and as a result, we have experienced increased footfall, dwell time, and retail and F&B spend. In 2025, we welcomed 16 million visitors to Metrocentre and over the year, several categories saw phenomenal growth, such as cafes up 3.9% vs 2024, and music, books, and games up 7.5% vs 2024.
In total, there are 20 F&B brands at the Qube. Credit: via Aver PR
How are you balancing national chain tenants with independent brands?
We aim to offer the best of both worlds by combining leading international brands such as Inditex’s Zara and Stradivarius, H Beauty, Sephora, and JD Sports, with unique independent and regional retailers.
Metrocentre already showcases independents such as Acropolis, Paris Dress House, and Rowen Homes, who all bring distinctive character and diversity to the centre, and we have more on the horizon with the opening of The Crescent in a few months’ time. The Crescent is a dedicated space in the heart of the scheme, which we are redesigning as a premium location for independents, championing the very best of the North East and beyond.
What trends are you seeing in terms of the most popular sectors?
Fashion has seen real evolution at Metrocentre, especially womenswear. We welcomed Stradivarius and Urban Outfitters last summer, and both brands were a driving force for growth during this period, with spending up 19.2% in August vs the same period last year. Even six months later, the impact of the brands’ arrival is still felt today: womenswear was up 5.4% in December vs the same period in 2024.
Our focus remains on further elevating the fashion offer at Metrocentre, building a solid lineup anchored by top-tier global brands. Beauty & Cosmetics remains popular, and brands like Sephora have been a real game changer, particularly for younger people in our region.
Competitive socialising is still taking the UK by storm, so leisure is also a growing category, albeit we need to consider which concepts suit Metrocentre, rather than just chasing the most popular ones. The successful launch of Activate’s second UK location here in the North East has been hugely positive, and we see the category as having further potential to grow.
Can you share any recent trends in lease pricing across the centre, and how they compare to pre-pandemic levels or regional benchmarks?
Lease pricing at any centre reflects the quality of location and the dynamics of supply and demand, and Metrocentre has risen in line with supply and demand. The centre is significantly more occupied compared to pre-pandemic, and now hosts an improved tenant line-up. For example, The Qube, the centre’s hospitality hub, is now fully let with leading F&B brands such as Maki & Ramen, Nando’s, Wingstop, and Wagamama. Limited availability and competition for the best space does impact pricing.
While Red Mall has consistently had a strong appeal to retailers, other areas such as Green Mall have seen greatly improved demand following the arrival of multiple new brands and major tenant investments in their stores. We have revitalised Green Mall over the last 18 months by reconfiguring units, and this has significantly boosted demand, with Søstrene Grene, Peppa Pig ‘s Surprise Party and KENJI among the latest additions.
The important point here is that Metrocentre is competitive and demand from new entrant brands is strong across categories and our various malls. There is no one-size-fits-all approach to leasing discussions, but it is certainly fair to say that leasing tension is greatly improved for Metrocentre’s best locations.
Redesigned Crescent is due to open soon. Credit: via Aver
Are you seeing demand for shorter or more flexible lease terms?
Many of our tenants are making major commitments by signing long-term leases, showcasing confidence in Metrocentre’s success and growth.
We’ve also seen a notable rise in stores upsizing, investing, and refurbishing, again, all signs that they want to be here for a while. Boots has enhanced its 40,000 sq ft unit with a new shop fit, Superdrug has upsized to a 10,000 sq ft unit, a 31% size increase from its previous space, as well as new store designs for the likes of Accessorize, HMV, Clintons, Kuoni, and other global names recommitting to the centre.
Are there specific asset management initiatives that are driving rental uplifts?
Demand and pricing are driven by so many different factors. We’ve rightsized some units to better meet tenant needs, we’ve invested in the overall centre environment, and we have created a stronger, more relevant tenant mix with larger, modern store fit-outs that make customers want to return time and time again.
We are always looking at ways to enhance our malls to ensure our tenants can trade successfully, and our visitors can shop the brands they love. The success of Metrocentre is a shared one – we introduce the brands and investment we feel will resonate best with visitors, but the brands help with that too. A joined-up approach creates that success, and as the centre outperforms, naturally you’ll see more investment and brands pushing to take more space.
Finally, can you share any upcoming new lettings or redevelopments within the centre that you’re particularly excited about?
We have several new tenants joining Metrocentre in the coming months, such as KENJI for its North East debut and Hollister set to open ahead of the Summer.
There has also been a strong focus on diversifying our tenant mix through the addition of healthcare, building on the opening of the NHS CDC in 2024. The recent opening of Bupa Mindplace at the centre marks an important step in transforming Metrocentre into a truly multi-dimensional scheme, while also delivering meaningful community benefits by providing accessible mental health services.
