Leeds’ city centre office market has had a positive start to 2024, with take-up more than doubling compared with the final quarter of last year.
According to the Leeds Office Agents Forum, about 250,000 sq ft of office space was leased in the three months to 31 March, a 122% increase on Q4 2023.
The average deal size also increased, to 8,055 sq ft from 3,508 sq ft recorded in Q4 2023, with 12 deals over 5,000 sq ft completed, compared to seven at the close of last year.
There were 31 city centre office deals signed in the first three months of 2024, with the most notable transactions the 37,865 sq ft letting to insurance firm QBE at Bruntwood SciTech’s West Village; EY signing for 25,303 sq ft at 12 Wellington Place; and Global Banking School committing to 29,407 sq ft at 1 Wellington Place.
Rental levels in Leeds city centre continued to rise, reflecting a lack of quality office stock and pressure on available space. More than 30% of the city centre deals closed in Q1 2024 were agreed at rents of of more than £30 per sq ft.
In the out-of-town market, 39,540 sq ft of office take-up was recorded across 14 deals, with the largest transaction at Tomlinson House, Capitol Park, comprising 11,153 sq ft of freehold space.
Richard Dunn, a partner with Sanderson Weatherall, said: “The subdued out-of-town market activity reflects the lack of superior quality office stock now available.
“Supply remains a pressing issue in both markets and with little new construction expected in 2024 the choice of new or improved space for occupiers looks unlikely to change until 2026.”
Leeds Office Agents Forum members include Avison Young, BNP Paribas Real Estate, Bowcliffe, Carter Towler, Carter Jonas, CBRE, Colliers, Cushman & Wakefield, Fox Lloyd Jones, JLL, Knight Frank, Lambert Smith Hampton, Sanderson Weatherall, Savills and WSB.
Image from Bruntwood SciTech
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