Demand for office space in Leeds is outpacing supply as big names, including Channel 4, re-locate to the north

Demand for premium office space in Leeds is beginning to outstrip supply following recent high-profile relocations, an estate agent has said.

Sunday, 27th January 2019, 5:23 pm
Updated Sunday, 27th January 2019, 5:28 pm
The take up of 3 Wellington Place in Leeds was a key deal for 2018.

Channel 4’s announcement last year that Leeds will become the home of its new HQ followed hot on the heels of relocations by Burberry, Perform Group and HMRC.

It reflects a growing trend for ‘north-shoring’ – companies moving out of London or expanding their presence in the north of England.

According to Savills, there is currently less than 450,000 sq ft (41,821 m sq) of Grade A office space up for grabs in Leeds and only around 12,000 sq ft (1,114 sq m) of new build space.

Sign up to our daily newsletter

The i newsletter cut through the noise

7 Park Row has undergone "significant refurbishment".

It said take up of office space had reached around 650,000 sq ft (60,386 sq m) last year.

Paul Fairhurst, director of the Savills office agency team, said: “It is fantastic to see Leeds bear the fruits of north-shoring as companies begin to see the benefits of being located in the city. This has been helped by the policy and infrastructure improvements that have opened Leeds up and helped occupiers settle.”

Savills predicts that Channel 4’s need for 30,000 sq ft (2,787 sq m) will be absorbed by existing office space and says refurbished space is becoming an increasingly attractive option after a spate of lettings late last year left new build stock significantly depleted.

The completion of a substantial refurbishment at 7 Park Row has helped to bring stock to the market, but there is likely to be no Grade A space available for tenants needing more than 40,000 sq ft (3,716 sq m) in the city centre until Rushbond PLC’s long-awaited refurbishment of the Majestic is completed.