Member Article

Leeds Office Market Enjoys Strong Q1

The Leeds office market is off to a flying start in 2013 with take-up figures for Quarter 1 the highest since Q4 2003, according to new research from property firm CBRE.

Take-up of Leeds office space for Q1 stands at 233,047 sq ft which is already 56% of the 2012 total and is the highest quarterly total in Leeds on record since Q4 2003.

Three key transactions completed in the first quarter of the year; the long-awaited pre-let of 1 Sovereign Square which totals 61,250 sq ft to KPMG, Dart Group which is Jet 2’s parent company has signed for 73,100 sq ft at The Mint and Shulmans have agreed a pre-let for 15,157 sq ft at 10 Wellington Place. Additional smaller deals were done within notable developments around the city such as Broad Gate which attracted Colliers (5,317 sq ft) and The Consulting Consortium (5,220 sq ft) and Bridgewater Place’s deal with DWF for 8,378 sq ft.

Director of Office Agency at CBRE Leeds, Jonathan Shires, said; “To have jumped up to 233,047 sq ft from a total of 69,061 sq ft transacted in Q4 last year is incredible and demonstrates how quickly the market can turn around when deals cross the line. Total available supply now stands at 1.32m sq ft which is 5% down from the same period last year. More worrying for Leeds as a whole is the rate at which grade A office supply is falling. Availability in this sector now stands at just over 400,000 sq ft which is some 80,000 sq ft less than current named demand from companies. Prime rents in the city centre have also increased to £25 psf a 4.2% increase from Q4 2012 with prime yields remaining unchanged at 6.75%.

“As there are no new speculative developments currently under construction or on the horizon in Leeds it is likely that occupiers who can move early will do so just to secure the best grade A stock with others waiting for the much awaited major refurbishment schemes at 21 Queen Street, One Aire Street and Minerva House, which combined will add a further 110,000 sq ft to the quality supply chain.”

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