A seven-figure investment at No 2 St James Gate in Newcastle city centre is set to deliver 23,516
sq ft of premium office space to the North East commercial property market.

Real estate investment trust, Palace Capital plc, has appointed Knight Frank to manage significant development works at the 82,000 sq ft, eight-storey office building, near Newcastle Central Station.

A 16-week works program will begin this month to upgrade the sixth floor - which has panoramic views over the city - and two office suites on the ground floor.

The installation of sustainable, all-electric VRF air conditioning and a refreshed, contemporary look and feel with exposed services on the ceilings and LED intelligent lighting will boost energy efficiency and occupier comfort and achieve a ‘B’ EPC rating.

The newly refurbished offices, sized from 3,412 sq ft to 23, 516 sq ft, will be available to let in Spring 2026.

Naylors Gavin Black and Knight Frank are jointly marketing the new-look offices - along with unit 3C which is a 6,480 sq ft self-contained unit at No 3 St James Gate.

Head of Property at Palace Capital plc, Daniel Davies, said: “We’re committed to continually investing in decarbonisation to ensure No 2 St James Gate delivers best-in-class offices with high energy efficiency and lower operating costs for occupiers.”

Tenants at No 2 St James Gate include tech firm, Softcat, international insurers Somerset Bridge, Orega, a premium serviced office provider, and public body, the Big Lottery Fund.

Head of Knight Frank’s Newcastle office, Ian Tew, adds: “Newcastle has a very constrained pipeline of high-end offices and the upgrade works at No 2 St James Gate will deliver much-needed Grade A stock to the market.”