The Leeds office market is expected to see a record 660,000 sq ft let by the end of 2015 – 26% above the five-year average of 520,000 sq ft.
Savills research found office lettings in the city would be up by 21% on last year’s 545,000 sq ft.
Large deals included Allied London’s 97,000 sq ft letting to Sky at New Dock and Addleshaw Goddard’s acquisition of 51,531 sq ft at Bruntwood’s Sovereign Square.
PwC also signed for 49,650 sq ft at M&G Real Estate’s and Marrico Asset Management’s speculatively built Central Square.
A low supply of available grade A office space (93,000 sq ft) is expected to change dramatically in 2016 when a number of new office developments are completed, adding more than 400,000 sq ft to the market.
Schemes to due to open next year include Bridge Ventures’ and Evenacre’s 6 East Parade; Central Square; Sovereign Square; and MEPC’s Wellington Place.
Paul Fairhurst, head of office agency at Savills Leeds, said: “For schemes reaching practical completion in the latter half of next year, rents are likely to come in at circa £27-£28 per sq ft.
“Additionally, we expect to feel the ‘north-shoring’ effect more strongly in 2016 as companies look to capitalise on the relatively low property costs and quality of life that Leeds can still offer in comparison with London and other big cities.”
