The report, based on research from 28 centres nationwide, shows that take up in the office market peaked during 2007 with the impact of the credit crunch and the economic slowdown being likely to be most felt in London.

The Yorkshire region has experienced strong and improving performance over the past few years, with Leeds seeing a 600,000 sq ft take up in 2007, up some 435,000 sq ft over the previous year.

Despite the challenging climate, prime Leeds rents are expected to rise from £27 per sq ft by the end of the year.

Robin Beagley, director at LSH's Leeds office, said: "The economy has undoubtedly slowed and this will impact on the office market, however the city centre occupier market still remains steady and predictions show that some growth is expected in rents over the course of the year.

Prospects

"Overall vacancy rates are only around nine per cent and with a limited number of new build offices scheduled for completion during 2008 the city will see some much needed Grade A supply.

Despite the uncertainties in the global credit markets, the prospects for Leeds during 2008 remain positive and deals are still being done."

Some of the largest deals over the last year include Ernst & Young and BDO Stoy Hayward's take up of almost 40,000 sq ft at Bridgewater Place and the take up of 13,500 sq ft by Walker Morris in the city centre's, Bank House.

Despite earlier concerns about a potential under supply of Grade A space, the traditional city centre boundary is expanding and new developments, offering larger floor places, have been constructed outside the traditional office quarter - including Clarence Dock to the south east of the city and Latitude Red to the west.

Major schemes set to be completed this year include HBG Properties' Latitude Red in Whitehall Road, The Mint by Deltalord and finally Capital and Counties Broadgate Scheme.