Figures revealed today from the Leeds Office Agents’ Forum (LOAF) show office take-up for the first quarter of 2022 reached a total of 228,897 sq ft across Leeds.
In Leeds city centre, 123,463 sq ft of take-up across thirty-two deals were recorded in the first three months of 2022 (Q1 2022), a 27% decrease compared to the same period last year (Q1 2021).
The largest city centre deal was to HG Construction, who has leased 14,126 sq at Belgrave Hall. Two other deals over 10,000 sq ft were completed – flexible workspace operator, 2Work, who opened in Leeds last year took an additional 13,551 sq ft at Bank House, and Yorkshire law firm, Lupton Fawcett, acquired 11,510 sq ft at 2 The Embankment.
Richard Dunn from Sanderson Weatherall said: “We saw a healthy level of leasing activity in the first three months of 2022. While the market didn’t witness the bumper-sized pre-lets which buoyed Q1 2021, leasing performance so far this year has come from a broad range of business sectors. We’ve also seen the expansion of another serviced office provider, positive signs that flexible workspace operators are starting to be more active again.
“The outlook for the rest of 2022 is encouraging with a strong pipeline of identifiable demand from a range of sectors including professional services, serviced offices, and financial services.”
In the first three months of 2022, Leeds’s out-of-town market transacted a total of 105,434 sq ft of office space across 31 deals. The largest deal was to Williams Lea at Leeds Valley Park who took 16,617 sq ft. Cennox, the ATM and security support firm, completed the second largest, acquiring 10,620 sq ft at City West Office Park.
According to the Forum, new build space, especially buildings with high sustainability, wellness, and smart technology focus will continue to set the tone for further movement in prime rents, which currently stand at £34 per sq ft.
Eamon Fox, from Knight Frank, added: “We anticipate further rental growth as new Grade A buildings are completed and businesses put their ESG requirements at the core of their real estate strategies.
“Leeds will however remain the most cost-effective of the larger regional office markets and is therefore positioned well to take advantage of footloose national inquiries.”
The Leeds Office Agents’ Forum is made up of Avison Young, BNP Paribas, Bowcliffe, Carter Towler, Carter Jonas, CBRE, Colliers International, Cushman & Wakefield, Eddisons, Fox Lloyd Jones, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Sanderson Weatherall, Savills, and WSB.
