Transport giant the Go-Ahead Group is moving its head office after striking a deal for new city centre space.

The bus and rail business has signed a deal for the entire second floor of 55 Degrees North in Newcastle city centre. The company will relocate its headquarters from 41-51 Grey St in Newcastle, where it has been based for many years, to the prominent building which has floor-to-ceiling glazing and enjoy views of the Tyne Bridge.

Go-Ahead, which delisted from the London Stock Exchange in 2022 after it was acquired by Globalvia and its Australian partner Kinetic, has taken up 8,740 sqft on a 12-year term with a break in year seven. The building is now full having been comprehensively refurbished by landlord Taras Properties, a property investment vehicle owned by the real estate entrepreneurs the Reuben Brothers.

Investment in the building has transformed the space into contemporary offices with LED lighting, a new air conditioning system, raised access flooring, and refurbished WCs, shower facilities, and reception. There is also secure car parking onsite.

Nathan Douglas, senior surveyor at Knight Frank who brokered the deal, said: “Go-Ahead was keen to upgrade the standard of its offices but stay in a central location and 55 Degrees North ticked those boxes. The office is at the southern end of Pilgrim Street which is seeing transformational regeneration including a new public square, a destination food and beverage offering and a 5* boutique hotel – which of course will provide top-class amenities on their doorstep.

“This letting is another example of the flight to quality we are increasingly seeing when leases come to an end.”

The agreement comes as new figures from Knight Frank show there is currently only 350,000 sqft of newly built office space on the market outside of London – half the amount released in 2024 and 44% down on 2023 in an already constrained office market.

Sunderland building Maker & Faber makes up a large slice of the space available, with 156,938 sqft of space in two of only four new-build office schemes completing and available to let this year, across UK regional cities.

Partner at Knight Frank, Patrick Matheson, says demand for Grade A offices continues to outstrip supply as businesses prioritise ESG credentials, amenity and location and he believes Sunderland is well placed to take advantage of this.