Leeds is currently experiencing significant development activity after a stagnant period, with a number of major high profile schemes now underway according to Michael Porter, Senior Director of Valuation Advisory at leading property firm CBRE.
Porter works with key developers including MEPC, Allied London and Scarborough Group and has noted increasing activity in the city centre, peripheries and out of town, as post-recession confidence has grown and developers seek to capitalise on limited supply and anticipated future rental growth.
He comments; “Within the city centre Hammerson’s Victoria Gate, approximately 360,000 sq ft, is due to complete in Autumn 2016, accommodating a John Lewis department store and some 30 retail / leisure units, further enhancing the retail offer following the massive success of the Trinity scheme. CBRE’s planning team advised Hammerson throughout the long process of obtaining consent for Victoria Gate.
“Significant office developments are also underway including Roydhouse Properties / M&G’s Central Square which will be approximately 200,000 sq ft, of which 49,650 sq ft is pre-let to PWC and 25,000 sq ft pre-let to RSM with a further 17,000 sq ft under offer; Bruntwood / Kier’s Sovereign Square – 93,000 sq ft, with 60,000 sq ft pre-let to Addleshaw Goddard; CPD Marshalls / Rockspring’s 3 Queen Street – 68,000 sq ft.
“MEPC / Hermes’ 6 Wellington Place, with office space at 96,698 sq ft also completed earlier this year. The office space is fully let to tenants including Net Premacy, Equifax, Squire Patton Boggs and SkyBet. Stirling Investments’ former Yorkshire Post HQ site is also being primed for development with planning consent for some 650,000 sq ft of mixed residential, offices and retail / leisure uses. In addition a number of refurbishment projects are underway, the most significant of which is Bruntwood’s City House adjacent to the rail station – circa 120,000 sq ft. All of this paints a very positive outlook for the city.”
Paul Pavia, Head of Development at MEPC commented:
“We are delighted with the success of 6 Wellington Place and the creation of Tower Square, a major element of our public realm offering has firmly established Wellington Place as an urban location that is much more than just a place to work. Wellington Place is now a community of more than 2,000 people who benefit from an attractive environment and an extensive on site team who manage and maintain the estate. The next building scheduled for completion is 5 Wellington Place which offers 75,000 sq ft of space and is due to complete summer 2016. Already we’re seeing strong levels of interest in this building and expect to announce our first lettings soon. As a result it is likely that 3 Wellington Place will be breaking ground this summer.”
Within Leeds’ Southbank, Allied London successfully attracted Sky to Leeds Dock taking 62,000 sq ft of waterside workspace in July of 2015, locating 650 staff within their new centre for digital and technology services. In addition, Allied London is also proposing to redevelop the former casino building to provide a further 60,000 sq ft of workspace for 2017/2018. Currently underway is the reconfiguration of the former retail units into a mixture of retail, leisure and further waterside workspace units with 7 out of the proposed 9 due for 2016 delivery either leased or under offer. New tenants include Northstar Coffee, Isee PR, Dock 29 and Hatch Communications.
Tim Gee of Allied London stated: “The momentum we created in 2015 with securing Sky has continued throughout this year with over 80% of our 2016 supply being pre-let or under offer. We expect this to continue and are proceeding with further offers throughout the course of 2017 and 2018, ensuring Leeds Dock becomes the centre for digital and creative industries within Leeds.”
Out of town Scarborough Group International and Legal & General Capital have commenced work on their 1,350,000 sq ft retail, leisure and office scheme at Thorpe Park, following Legal & General’s acquisition of a 50% interest in the project. An initial 31,650 sq ft office building is being built (currently Leeds’ only out of town speculative office development) and the site levelling works have commenced for the retail & leisure park, housing land, and link road.
The first anchor store on the retail and leisure park has already pre-let to Next with further lettings currently being progressed. A number of cinema operators are also looking at occupying a multi-plex within the scheme. The significant office element will ultimately accommodate a further 900,000 sq ft.
Mark Jackson for Scarborough Group International stated:“Our vision for Thorpe Park Leeds is now being delivered with the development of infrastructure works and the shopping and leisure park due to start in earnest this Summer, and with the first of the new office buildings completing in November. With excellent support from Legal & General Capital, the high aspirations that we have set for Thorpe Park Leeds are becoming a reality”.
Michael Porter commented that these schemes will make a major contribution to the future growth and success of Leeds further raising the profile of the Yorkshire capital, striving towards becoming a ‘Northern Powerhouse’.
