Fresh hope for city office building feeling effects of recession-hit market

Broad Gate, on the Headrow in Leeds, is understood to be one of two buildings shortlisted by a potential tenant looking to move into 35,000 sq ft of new office space.

In addition, two of the six suites on the top floor, which total 3,500 sq ft, are in solicitors' hands.

The development, by Highcross, comprises a total of 168,750 sq ft of office accommodation, offering the largest single-floor plates in the city. It was developed in 2008 but, like Latitude and The Mint in Leeds, it has stood empty during the decline of the occupier market.

Richard Pellatt, director of Highcross, said Leeds City Council's decision to put on hold plans to relocate staff from across the city into one building was a blow to Broad Gate.

He said: "We were the preferred option for Leeds City Council for consolidating their offices in one space. Those plans have been shelved now, which is disappointing. We have now had to re-launch the building after 12 months of negotiations."

Broad Gate, which is on the site of the former Allders building, has picked up five awards in the last year for its design, including Best Refurbished/Recycled Workplace in the British Council for Offices' annual regional awards. It

will compete in the national finals of the competition in October.

Mr Pellatt said: "I'm hoping that the office market will start to improve post-election as people realise that the world isn't going to fall off a cliff and they begin to take some forward-looking decisions.

"There has never been a better time to get a good deal in Leeds. There is no new development going on so the supply of space will diminish fast and the deals that are around at the moment won't be around forever."

Highcross bought Broad Gate for 70m from previous owner Capital and Counties in June 2008.

The building also includes four retail units which are occupied by TK Maxx, Sainsbury's, Argos and Clas Ohlson.