North-shoring key driver to city centre take-up
NORTH-shoring is a key driver in the increased demand for city centre offices and residential spaces in Yorkshire, new research has revealed.
Despite uncertainty surrounding Brexit, the latest report from real estate advisory firm Bilfinger GVA ‘Offices – who needs them?’, has found that north-shoring – the term used to describe the relocation of jobs out of London to any other UK markets – is driving demand in the Yorkshire office markets.
As more companies migrate to locations including the North of England, they are looking for city centre offices and their employees, being adapted to 24/7 flexible working patterns, are looking to live in the centre also.
More findings from the report show that the strongest sectoral take-ups in Yorkshire are digital, telecommunications and financial and professional services.
The report illustrates that the further investment into the Northern Powerhouse has begun and will continue to provide opportunities to mitigate any long-term negative economic impacts that may arise from Brexit.
Matthew Tootell, office director at Bilfinger GVA Yorkshire, said: “The positive health of the Yorkshire office market is being driven by inward investment, new transport schemes and the regeneration of areas such as Leeds South Bank.
“It’s interesting to see a rise in demand for city centre sites; we have recently secured the sale of Zicon House (23,395 sq ft) and the owner has proposed a residential conversion to create 65 studio flats there in Leeds’s Northern quarter. Its clear occupiers see the opportunity to create residential sites for the people who are relocating due to north-shoring.”
Catalyst factors to north-shoring and the city centre renaissance in Yorkshire include the more affordable rental prices in Yorkshire and the £1bn West Yorkshire Plus Transport Fund which was introduced to improve city region connectivity, especially between Leeds, Sheffield and Manchester.
Further making Yorkshire appealing to occupiers are key infrastructure schemes linked to HS2 such as the redevelopment of Leeds railway station, Trans-Pennine Express electrification, and the East Leeds Orbital Road to unlock a major area of plan-led housing growth.
Ben Hall, regional senior director at Bilfinger GVA Yorkshire, added: “The report definitely presents an opportunity for Yorkshire as city centres offices and residential sites are increasingly in demand. Our role here at Bilfinger GVA is to monitor trends such as this and ensure we can successfully advise all those that wish to find out more Yorkshire’s city centre offering.”
The main overall findings from the Bilfinger GVA report – which encompasses ten UK cities – shows that the demand for city centre offices has returned to pre-recession levels over the past three years as strong economic and employment growth have driven increased letting activity.
