Office leasing figures released by the Leeds Office Agents’ Forum (LOAF) show 134,796 sq ft of office space was taken up by occupiers in the city centre in second quarter of 2017 (Q2 2017), a 28% increase on the first quarter. In the out-of-town market, 91,713 sq ft of office deals completed, a 65% increase on the first three months of the year.
Of the 39 city centre transactions completed in Q2 2017, the largest was the acquisition of 46,058 sq ft of space at 6 Queen Street by Burberry, which is the biggest city centre deal to complete for over two years. The Baird Group’s freehold acquisition of Riverside House, comprising 10,681 sq ft, was the only other city centre transaction above 10,000 sq ft.
There were a total of 21 deals in the out of town market, with three deals of over 10,000 sq ft in size: the letting to SmartCredit of 18,179 sq ft at Mayfield Business Park; Cunningham Lindsey’s 12,582 sq ft acquisition at City West and the letting to Headoffice 3 of 10,468 sq ft at Hawthorn Park.
Richard Fraser from Carter Towler and LOAF spokesperson, said: “Whilst we have seen the largest city centre deal since 2015 in this quarter, with the 46,058 sq ft letting at 6 Queen Street, by and large the market continues to be driven by a strong churn of ‘bread and butter’ office deals below this size bracket.
“At the half year point, transactional volumes are 23% percent higher than the same time last year and the number of deals has seen a 39% increase in comparison with the same period.”
Eamon Fox from Knight Frank added: “With a continued focus by occupiers on grade A kit, we’ve also seen an increase in headline office rents. Prime city centre space is now commanding £30.00 per sq ft, and we have also seen upward movement to around £22 per sq ft in the out of town market.
“Looking to the rest of 2017, there are a range of lease events due to be triggered this year and in to 2018 and 2019, particularly on space occupied by larger corporates. Combined with a healthy number of sizeable live requirements, we are predicting a strong overall performance.”
The Leeds Office Agents’ Forum was established in 2010. Its members are BNP Paribas, Carter Towler, Carter Jonas, CBRE, Colliers International, Cushman & Wakefield, Eddisons, Fox Lloyd Jones, Bilfinger GVA, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Sanderson Weatherall, Savills and WSB.
