City firms can unlock £100m in new office pre-lets

Accountants PwC and law firms Walker Morris, Squire Sanders, DAC Beachcroft and Shulmans have issued requirements for office space in Leeds as they approach the end of leases.

The combined requirements amount to 240,000 sq ft and would have a total investment value exceeding £100m, according to property experts.

The construction work would provide a significant short-term jobs boost to the region’s economy and also regenerate key sites across the city.

“These firms are looking ahead in the market place on the basis that there will be no guarantee that some of the existing buildings will be available in two or three years’ time,” said a property source.

“Speculative development has completely stopped because of the lack of funding. That’s what is driving this imperative to look further ahead.”

PwC’s lease at Benson House in Wellington Street expires in four years. It is thought that PwC – which has 600 staff in Leeds – has issued a requirement for 60,000 sq ft.

A PwC spokeswoman said: “No imminent moves are planned for any of the offices in Leeds, Sheffield or Hull. We have a lease for the Sheffield office for two more years and we’ve only recently moved into the Hull office.”

She added: “We would consider any options when the time is right. That would probably include pre-let.”

Big Four rival KPMG has been the first to move in the pre-let market after agreeing terms to become anchor tenant of the Sovereign Square development.

Office head Chris Hearld has said the £30m development has the “hidden benefit” of boosting confidence in the city.

Squire Sanders is also believed to be looking at the Sovereign Square site, which would help meet the city council’s aspirations of creating a new hub for professional services at a key site linking the north and south of the city.

“Squire Sanders is currently in the process of reviewing all available options for our office accommodation in Leeds,” said a spokeswoman. The firm has 266 staff.

Walker Morris, one of the biggest law firms in Yorkshire, is said to have a requirement for around 85,000 sq ft.

It is believed to be looking at a specific site for a new build office. The other option would be to stay put and refurbish Kings Court.

A Walker Morris spokeswoman said: “No comment at the moment.” She declined to say when the lease expires at Kings Court, which is home to nearly 500 staff.

DAC Beachcroft has two sites in Leeds, in Park Square and South Parade, which it hopes to consolidate at one new office. It is thought to need 40,000 sq ft for its 300 staff. A spokeswoman said: “Our current lease doesn’t expire until 2016 – so there isn’t anything to say at the moment.”

Shulmans has a requirement for 40,000 sq ft. Its lease expires in January 2014 and is thought to be looking at all options. Chairman Jeremy Shulman declined to comment.

The main sites for pre-let developments in Leeds are Sovereign Square, Wellington Place, Whitehall Riverside and City Square.

A property source said pre-lets would “start to develop and in-fill some of those sites that have been gaps in the cityscape.

“It’s an opportunity for some good quality, well designed buildings and it releases back into the market the stock that they currently occupy for refurbishment and redevelopment.”

New offices would add to the pipeline of projects including the Trinity Leeds and Eastgate Quarters retail centres, the Leeds Arena and the Advanced Medical Park.

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