Leeds rents are set to rise for the first time in six years, according to a GVA report.
The agent has predicted the first rental growth across the industrial, office and retail sectors since 2007. Rents have declined across all sectors since 2008.
Growth of 0.7% is expected in the Leeds city region this year, accelerating to 1.2% next year and 2.3% by 2017.
Investment director Ben Hall launched the report at GVA’s Invest in Leeds event in London, which is aimed at boosting the city’s profile among London-based institutions and fund managers.
“One of the most crucial things is that investors have renewed belief in the occupational market,” he said, pointing to recent office investments at Bond Court and Toronto Square.
Despite the difficulty in attracting inward investment in recent years, he said GVA expected an average rental growth of 1.8% annually from the end of 2013 to the end of 2017.
The office sector will see the strongest rate of increase at 2.5% annually over this period.
“The message to take away is that now is a good time to invest in the Leeds city region,” said Hall.
The news comes as two major lettings are set to make 2013 a bumper year for the city, with the council taking a 170,000 sq ft prelet at Town Centre Securities’ Merrion House and Lowell close to taking 82,000 sq ft at Ellington House .
Upcoming developments in Yorkshire include KPMG’s One Sovereign Square, Merchant Gate in Wakefield, Westfield in Bradford and Hammerson’s Victoria Gate.
chris.berkin@estatesgazette.com
