Partner Article

Office take-up in Leeds hits new heights

Leeds’ commendable level of activity in the office market in the first three months of 2013 was followed by another strong quarter, with take-up of 203,000 sq ft between April and June, according to Knight Frank’s latest Regional Office Market Presentation (ROMP) research.

The total for the first six months of the year stands at 438,146 sq ft, a level which exceeds the city’s annual total for each of the previous four years.

Average headline rents in Leeds are now £25 per sq ft, having fallen from £27 per sq ft at the height of the market. Net effective rents are £19 per sq ft, but are expected to rise to £20 per sq ft by the end of the year.

Highcross’s Broad Gate scheme secured two high profile lettings, including the largest deal the city has seen in a decade. First, Yorkshire Building Society leased 76,500 sq ft, then Cap Gemini agreed to 25,400 sq ft on the fifth floor. Elsewhere, QA and Masta Healthcare took space at Land Securities’ City Exchange, totalling 20,000 sq ft.

Elizabeth Ridler, partner specialising in office agency with Knight Frank in Leeds, said: “The flurry of prominent deals in the first six months of 2013 reflects the renewed confidence in the Leeds market, with major long-standing requirements among legal and financial occupiers coming to fruition.

“Although overall levels of demand have been dented by recent deals, active demand is relatively robust, standing at 350,000 sq ft. Notable outstanding requirements include Sky (55,000-70,000 sq ft), DAC Beachcroft (40,000 sq ft) and Squire Sanders (40,000 sq ft).

“Construction of KPMG and Shulmans’ pre-lets have recently commenced on site, although there remains no speculative activity at present.

“Looking ahead, the recent activity at Broad Gate has left the city centre with just one building which can satisfy the larger requirements, namely City Exchange. The lack of Grade A accommodation is expected to result in increased demand for good quality refurbishments in the prime core.”

This was posted in Bdaily's Members' News section by Mark Lane .