Leeds city centre saw office occupier take-up in Q3 of 2016 reach 125,321 sq ft, 71% up on the previous quarter as demand remained solid.
Established in 2010 with members from BNP Paribas, Carter Towler, Carter Jonas, CBRE, Colliers International, Cushman & Wakefield, Eddisons, Fox Lloyd Jones, Bilfinger GVA, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Sanderson Weatherall, Savills and WSB, ‘LOAF’ collates and distributes definitive office market data.
Research from the Leeds Office Agents’ Forum (LOAF), stated that of 53 total deals that completed, the largest was the out-of-town letting of 45,647 sq ft at Leeds Valley Park to Lowell. The other four, in the city centre, were 23,762 sq ft to the Department of Health at Whitehall II, 12,969 sq ft to Ward Hadaway at Wellington Place and the deals with KPMG and Life Search at Broad Gate of 12,305 sq ft and 10,814 sq ft respectively.
By comparison, the out-of-town market in Leeds saw deals of 65,944 sq ft carried out, comparable with the 76,026 sq ft of deals in the previous quarter. The 2016 take-up figures to date for Leeds city centre totals 320,332 sq ft while the-out-of-town market has seen 283,144 sq ft let.
LOAF spokesperson and director at Savills, Paul Fairhurst, said: “The UK’s property market may find itself in a more uncertain world, however this hasn’t impacted on occupational activity in Leeds especially for Grade A space. At face value, the relatively limited supply of Grade A space and local economic dynamics have so far helped cushion any uncertainty compared with London and the South East.”
He continued “We have continued to see a positive story play out in Leeds however the ongoing supply issues, being experienced in most regional office markets, continue,”. LOAF stated that the recent completions of three major Grade A city centre office buildings, 5 Wellington Place, 6 Queen Street and Central Square, as well as the near complete 3 Sovereign Square, will help bring much-needed space for other requirements in the city.
Eamon Fox of Knight Frank said “Two further city centre schemes, Platform and 3 Wellington Place, along with Paradigm at Thorpe Park and Kirkstall Forge, in the out-of-town market are all under construction and will help plug this supply gap in the near future.”