Yorkshire's city centres see increase in take-up due to north-shoring

North-shoring, the term used to describe the relocation of jobs out of London to any other UK markets, is playing a significant role in the increased demand for city centre offices and residential spaces in Yorkshire, new research has revealed.

Despite uncertainty surrounding Brexit, Bilfinger GVA’s latest report ‘Offices – who needs them?’, has found that north-shoring is driving demand in the Yorkshire office markets.

As more companies relocate to other UK regions, including the North of England, they are looking for city centre offices and their employees are also looking to live in the centre.

Findings from the Bilfinger GVA report show that the strongest sectoral take-ups in Yorkshire are: digital, telecommunications and financial and professional services.

Matthew Tootell, office director at Bilfinger GVA Yorkshire, said: “The positive health of the Yorkshire office market is being driven by inward investment, new transport schemes and the regeneration of areas such as Leeds South Bank.

“It’s interesting to see a rise in demand for city centre sites; we have recentlysecured the sale of Zicon House (23,395 sq ft) and the owner has proposed a residential conversion to create 65 studio flats there in Leeds’s Northern quarter.

“It’s clear occupiers see the opportunity to create residential sites for the people who are relocating due to north-shoring.”

Factors contributing to north-shoring and the city centre renaissance in Yorkshire include the more affordable rental prices in Yorkshire and the £1bn West Yorkshire Plus Transport Fund, which was introduced to improve city region connectivity, especially between Leeds, Sheffield and Manchester.

Key infrastructure schemes linked to HS2 such as the redevelopment of Leeds railway station, Trans-Pennine Express electrification, and the East Leeds Orbital Road are also making Yorkshire appealing.

Ben Hall, regional senior director at Bilfinger GVA Yorkshire, added: “The report definitely presents an opportunity for Yorkshire as city centres offices and residential sites are increasingly in demand.

“Our role here at Bilfinger GVA is to monitor trends such as this and ensure we can successfully advise all those that wish to find out more Yorkshire’s city centre offering.”