OFFICE take-up in Leeds was the third-highest on record in the second quarter of 2015, but headline rents are yet to see sustained growth.
The period including law firm Addleshaw Goddard signing up for 51,531 sq ft, with the Sovereign Square development one of the largest pre-lettings in Leeds in recent years. Close behind was PwC’s pre-let of 49,650 sq ft at Central Square.
“Leeds still lags behind the other regional centres in terms of headline rents, with the current figure standing at £26.00 per sq ft,” said Eamon Fox, partner and head of office agency at Knight Frank in Leeds.
“However, the PwC deal may have been agreed at slightly more than this, which could be an indication that rents are edging up.”
During the second quarter, take-up was more than 300,000 sq ft in 43 transactions. Addleshaw Goddard and PwC accounted for about one-third of this, while a further one-third was other Grade A office deals.
Mr Fox added: “The supply of Grade A space is expected to increase further, with many new developments under construction and expected to complete over the next 12-18 months. Indeed, building new Grade A offices is currently almost as cost effective as a good quality refurbishment, once overall occupational costs are considered. A good example of this is 9 Bond Court where a rent of £25.00 per sq ft has been achieved.”
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