City centre office deals up but there is a lack of supply in Leeds

Leeds recorded a healthy year for city centre office space take-up in 2019 but property experts warn the city is running out of available new space this year.

Wednesday, 22nd January 2020, 5:24 pm
The forthcoming Temple district in Leeds will include new office buildings like Globe Square.

New 2019 figures by the Leeds Office Agents’ Forum (LOAF) show that occupier take-up in Leeds city centre reached 743,192 sq ft in 2019, 12 per cent higher than the previous year.

In the final three months, city centre office take-up reached 164,398 sq ft across 31 deals. There were three transactions over 10,000 sq ft - the largest being the letting to Sky of 31,000 sq ft at 26 Whitehall Road.

Ross Firth from, Cushman & Wakefield, said a squeeze on supply is putting upward pressure on city centre rents, with £32.50 per sq ft typically being quoted on the best space.

Sign up to our daily newsletter

The i newsletter cut through the noise

LOAF’s data also showed that 84,483 sq ft of office space, across 28 deals, was transacted across the out-of-town market in Q4 last year. In total, 280,524 sq ft was transacted across the year in the out-of-town market, a 30 per cent decrease compared to 2018.

Alex Hailey, from CBRE, said: “The lack of good quality office product will continue to be an issue.”

Paul Richardson, of CEG, which is building the first office building at the Temple district - said: “Pre-lets of speculatively built office accommodation are going to continue to be the main option for occupiers looking to the city for the next two to three years.”