Office take-up in Leeds is set to break the all-time record set in 2004, according to Knight Frank.
The agent’s latest research found a slowdown in Q3, with just over 100,000 sq ft leased, but predicted that take-up – currently at 539,000 sq ft – would surpass the 2004 record of 600,000 sq ft by the end of the year.
Leeds offices partner Elizabeth Ridler said 2013 take-up was “markedly above the five-year annual average of 386,000 sq ft”, and that it was “extremely likely” that the 2004 record would be surpassed.
“It is fair to say that the frenzied activity of the first half of the year has slowed down during the third quarter, with only 23 deals transacted. The Leeds office market was largely dominated by small transactions under 5,000 sq ft, which accounted for 74% of total deals.
“However, positive market sentiment along with a solid level of new enquiries should contribute to a strong final quarter.”
The largest deal of the quarter saw the NHS Leadership Academy take 22,510 sq ft on a short-term lease at 3 The Embankment , while BskyB is understood to have shortlisted two sites for a 60,000 sq ft requirement.
Ridler said that average headline rents in Leeds were now £25 per sq ft, having fallen from £27 per sq ft at the height of the market. Net effective rents were £19 per sq ft, but were expected to rise to £20 per sq ft by the end of the year.
chris.berkin@estatesgazette.com
