Two sides to Leeds market
CITY centre office lettings in Leeds fell by almost two-thirds in the second quarter.
Research by DTZ suggests the fall, from 155,847 sq ft to 56,400 sq ft, was in contrast to a rise in interest in out of town lettings where 164,400 sq ft was let, up from 56,021 sq ft.
Tenants looking to take advantage of discounted costs to move to better space was one of the main drivers of deals.
The acquisition of The Printworks by Leeds City College was one of the quarter’s bigger deals.
Eamon Fox, associate director of Office agency at DTZ in Leeds, said: “Leeds city centre lettings activity fell in Q2, although without doubt Q3 and Q4 will see a resumption of stronger transactions volumes.
“Current demand is now being driven by occupiers requiring in excess of 15,000 sq ft. Historically our market has been driven by sub 5,000 sq ft demand but this is changing.
“Availability of offices is still high in the city, but if you are a large occupier, looking for in excess of 30,000 sq ft in a single building, the options are really limited to six buildings. This suggests a two tier market will develop.”
