Grade A developments to "help bridge supply gap" after strong finish to 2014
A STRONG finish to the year saw the Leeds office market enjoy its best quarter of 2014, according to new figures.
The Leeds Office Agents’ Forum, which brings together 15 of the leading agents in the city, has published data showing city centre office take-up totalled 157,568 sq ft across 36 deals in the fourth quarter.
Activity was boosted by two significant pre-lets to law firms, as Squire Patton Boggs committed to 32,382 sq ft at MEPC’s 6 Wellington Place and DAC Beachcroft signed for 24,800 sq ft in St Pauls House on Park Square.
The out-of-town market also finished strongly with 27 deals totalling 118,132 sq ft, the largest of which were Search Laboratory taking 23,685 sq ft at Blokhaus in Horsforth and the letting to Tekla of 20,395 sq ft at Synergy 27.
2014 occupier take-up in the city centre reached a full year total of 545,006 sq ft which is nearly 8% ahead of the 10 year average of 505,446 sq ft. Total out-of-town activity across 2014 reached 236,719 sq ft.
Paul Fairhurst from Savills and spokesperson for Leeds Office Agents’ Forum, said: “Quarter 4 take-up was strong, as anticipated, with two major prelets and some sizeable deals across the city centre and out-of-town markets.
“Market activity was never going to reach the dizzy heights of 2013 when we saw the best level of take-up for over 15 years, however our data shows a healthy volume of deals which points to improving occupier sentiment. Equally, 2015 looks promising as there are a number of other, as yet unsatisfied, requirements in the market.”
Steven Jones from Eddisons added: “Like most regional markets, available Grade A supply remains at record low levels. Leeds is however one of only a handful of UK cities with major new speculative developments under construction with new space coming forward at Wellington Place, Central Square and 6 Queen Street. With 3 Sovereign Square now onsite, combined with refurbishments at St Pauls House and 21 Queen Street, these will help to bridge the supply gap for grade A space.”
