High demand for city centre office space drives Leeds office market

The figure was 43 per cent up on the previous quarter and 11 per cent above the 10-year average, which was driven by the city centre market.

The city centre market outperformed the 10-year average by 31 per cent.

However, the out-of-town market struggled at 27 per cent below average levels.

The annual take-up was also down by 17 per cent on the previous year, at 888,594 sq ft.

City centre availability fell 1.4 per cent from last quarter to eight per cent.

Grade A offices accounted for 25 per cent of this total, with just seven of these buildings offering at least 15,000 sq ft of space.

The report found that 2022 was the most active year for development completions in Leeds since records began in 2000, including the completion of Globe Point. This is expected to continue to increase throughout 2023.

Top rents increased to £36 per sq ft, a 5.9 per cent quarterly and annual increase.

Jill Goodman, director at Avison Young, said: “The figures for the secondary market are not a surprise, as this sector continues to struggle to attract businesses outside of the city centre. Despite lower figures, 2022 was the most active year for development completions in Leeds since 2000, including the completion of Globe Point.”

The report supports the data recorded by the Leeds Office Agents' Forum (LOAF).

Earlier this year, LOAF also said that the 54,545 sq ft letting at 1 Trevelyan Square, off Boar Lane, by Leeds Trinity University was the largest deal to complete in the final quarter of 2022.

The letting to Arup, which is set to move into 35,829 sq ft of office space at 11 and 12 Wellington Place later this year, was another significant deal. It was also the largest transaction in 2022 to a professional services occupier.

Run entirely on renewable electricity, the buildings are expected to save 407 tonnes of CO2 annually.

Sustainability credentials also include an EPC A rating, BREEAM rating of Outstanding and a Fitwel accreditation, a certification system that positively impacts health through building design and operation.

Meanwhile, construction of new office space in the city centre continues. Last month, a new district reached a key milestone with the structure of its first two buildings, which will accommodate 2,500 workers, now complete.

The two buildings, at Aire Park in Leeds, which range from six to eight storeys are due for practical completion by developer Vastint UK in November.

Once occupied, the two buildings will comprise over 200,000 sq ft of office and ground-floor retail space for up to 2,500 workers.

The Leeds Office Agents' Forum is made up of Avison Young, BNP Paribas Real Estate, Bowcliffe, Carter Towler, Carter Jonas, CBRE, Colliers, Cushman & Wakefield, Fox Lloyd Jones, JLL, Knight Frank, Lambert Smith Hampton, Sanderson Weatherall, Savills, and WSB.