Out-of-town property demand outstrips city centre leases for first time in two years
Office leasing figures released by the Leeds Office Agents’ Forum (LOAF) show strong demand for space in the second quarter of 2018, with the out-of-town market outperforming the city centre for the first time in two years.
According to LOAF’s data, a total of 167,962 sq ft of offices was transacted across the out-of-town market between April and June this year. This was a 100% increase on the previous quarter and an 83% increase on the same period in 2017.
Activity was buoyed by the letting at White Rose Office Park, which saw media company Perform take 39,422 sq ft and credit management company Lowell, who agreed a lease on 16,617 sq ft, at Leeds Valley Park. Of the 28 out-of-town transactions to complete, six were over 10,000 sq ft.
Ross Firth from Cushman & Wakefield and LOAF spokesperson, said: “A healthy combination of business expansion and sizeable deals over the 10,000 sq ft bracket means we have seen the strongest out-of-town quarter, in terms of occupier activity, since 2016.
“Lowell has cemented its position at Leeds Valley Park and Perform’s expansion has culminated in a new 40,000 sq ft HQ building at White Rose Office Park, a real indication that the out-of-town market has and continues to gather momentum.”
In Leeds city centre, 34 deals transacted in the period, totalling 145,329 sq ft which was on a par with the first three months of 2017 (134,796 sq ft).
Four deals over 10,000 sq ft completed: Regus acquired 10,142 sq ft at Pinnacle, Investec took 20,402 sq ft at 3 Wellington Place, MOJ agreed to take 25,938 sq ft at 5 Wellington Place and Gilbanks signed for 19,838 sq ft at One Park Row.
Liam Ridley from BNP Paribas added: “Demand for co-working space, which has seen record growth in London, continues to evolve in Leeds city centre with the arrival of Gilbanks who is set to launch its first flagship workplace later this year.
“With Regus taking further space at Pinnacle, Leeds continues to improve its co-working business space offer, particularly to tech-start-ups and SMEs who are increasingly seeking flexible, short-term and collaborative space.”
The Leeds Office Agents’ Forum was established by the leading surveying firms based in the city to collate and distribute definitive office market data. Its members are BNP Paribas, Bowcliffe, Carter Towler, Carter Jonas, CBRE, Colliers International, Cushman & Wakefield, Eddisons, Fox Lloyd Jones, GVA, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Sanderson Weatherall, Savills and WSB.
