Leeds office market has stellar 2017 boosted by Government, fashion and serviced office sectors

23 November 2017

The Leeds office market has remained popular in 2017 with take up levels reaching 784,000 sq ft (72,836 sq m) in the first three quarters of the year, according to new research by Savills. Take up is 60% above the five year average for this time of the year. This increase has been led by key deals including HMRC and NHS taking 378,000 sq ft (35,117 sq m) at Wellington Place, Burberry relocating to 6 Queen St and the serviced office sector expanding their presence in the city.

The firm notes average lease lengths across regional cities as a whole has fallen by 3% as serviced office providers increase their presence in the market. In Leeds 2017 has been a record year for take up of serviced office space with levels reaching 60,000 sq ft (5,574 sq m) for the first three quarters of the year.

Top rents in the city achieved £30 per sq ft (£323 per sq m) according to Savills, with this expected to grow to £32 per sq ft (£344 per sq m) by 2019. At the same time, the rental differential between refurbished and new office space has increased from £0.50 per sq ft (£5 per sq m) to £3 per sq ft (£32 per sq m) as recently completed Grade A space has attracted strong demand.

Occupier activity in the out of town market has picked up with a cluster of sub-3,000 sq ft (278 sq m) deals in York during the third quarter. Take up in the out of town markets reached 258,000 sq ft (23,969 sq m) for the year to September; 18% above the five year average with Savills predicting these levels to reach 350,000 sq ft (32,516 sq m) by the end of the year. Notable deals in the out of town market include Zenith expanding its global headquarters by 18,500 sq ft (1,718 sq m) at Kirkstall Forge and Smartcredit Ltd signing for 18,000 sq ft (1,672 sq m) at Mayfield Business Park, Ilkley.

Paul Fairhurst, head of Savills Leeds, comments: “The Leeds office market continues to be popular with a range of occupiers causing a tight supply schedule and increasing competition for Grade A space. The creation of a government hub, rise of serviced office occupiers and the recovery of the out of town market has significantly boosted the take up totals so far this year, something we expect to continue into 2018.”

 

 
 

Key Contacts

Paul Fairhurst

Paul Fairhurst

Head of Office & Director
Office Agency

Leeds

+44 (0) 113 220 1207

 

Rebecca Allen

Rebecca Allen

UK PR Manager
Cross Border B2B Communications

Head Office London

+44 (0) 20 7409 8937