The final phase of Newcastle city centre's largest regeneration project is nearing completion, with 2 Pilgrim Place set to become the last piece of the Pilgrim Street transformation. The 96,000 sq ft office building is scheduled for completion in April 2027 and will welcome tenants in spring 2027.
Transformation of Pilgrim Street
The project began with the closure and demolition of the Odeon cinema, and the street scene has changed dramatically since the late 2010s. Over the past six years, the multimillion-pound transformation has seen the practical completion of the 463,000 sq ft Pilgrims Quarter, which is on course to welcome 10,000 HMRC and other Government workers in 2027. Hotel Gotham has opened in the city's old fire station, and Worswich Chambers was restored and relaunched as STACK Newcastle in December.
Construction teams from Bowmer + Kirkland are working on both 1 and 2 Pilgrim Place, with both buildings due to be finished in April next year. The neighbouring Bank House is now at 100% occupancy.
Office Space and Amenities
Designed by Ryder Architecture and delivered by Bowmer + Kirkland, 2 Pilgrim Place will feature a wellness suite and amenities for cyclists on the lower floors. Level 3 will have a terrace with south-facing views over the Tyne, and every floor will offer views over the city, including the neighbouring STACK.
The building is available to let, with joint letting agents Knight Frank and Avison Young reporting high interest. Several companies, including two professional services businesses with offices in Newcastle, are already in talks to take space. Once one firm signs, the agents expect a 'domino effect' as other companies follow.
Demand for Grade A Offices
Demand for sustainable, high-spec office space in Newcastle city centre has been consistent, and with limited new development coming forward, viewings have been busy. Paul Stewart, director at Avison Young, said: “There is a lot of optimism in the city at the moment and a limited amount of new development. After 2 Pilgrim Place the next potential development is Founder’s Place but that is only at the planning stage, and there’s nothing in the pipeline after that.
“When Covid came everyone said that would be the death of the office – yet two years later Lumen was full, now Bank House is full, and so it will keep going on. But it’s important to keep the pipeline going and make sure we have available Grade A offices.”
The annual rental price for office space per square foot at 2 Pilgrim Place will be £40, compared to an average of £55 in Leeds, £65 in Manchester, and over £150 in London. Stewart noted that firms are attracted to the North East by lower rental prices, adding: “Even though we think we are pushing the boundary here, we are still very good value.”
Post-Pandemic Office Trends
Since Covid, companies have worked to lure staff back into offices. “They have to earn the commute,” said Stewart, “It has to be a nice place to be and not just somewhere to sit and answer emails.” Many firms that downsized after the pandemic now feel they cut back too much, as more people want to make the most of new office features such as wellness rooms, gyms, and hotel-style breakout rooms.
The teams at 2 Pilgrim Place will be prepared to add exciting features that new tenants may want, as they did with Bank House. Patrick Matheson, partner at Knight Frank, said: “2 Pilgrim Place is one of the most exciting office developments in the North East. With a high-specification design and strong sustainability credentials, it offers businesses the prospect of being part of the momentous transformation of Pilgrim Street. 2 Pilgrim Place is a rare opportunity to secure future-proofed space in a prime location.”
