Leeds sees a massive boost from the arrival of Channel 4 and other state-of-the-art buildings

Eamon Fox, partner and head of the office agency department at global property consultancy Knight Frank, said the Leeds market has proved incredibly resilient in the midst of the pandemic.

"I am looking forward to 2022 with genuine optimism," he said.

"Headline rents are currently £34 per sq ft and, all being well, I can see them hitting £36 per sq ft by the last quarter of the year, given the high standard of some of the new office space which is coming on to the market.

"There is a flight to quality, which has accelerated during the past 12 months, as occupiers look for space in which employees feel comfortable and safe.

"The long-awaited arrival of Channel 4 in Leeds has proved to be a tremendous boost to the city, underlining its potential."

He said the knock-on effect is already being felt with Leeds becoming a magnet for bright, young tech, media and creative companies.

He predicts that the education and academic sector will also have an increasingly strong presence in the city centre, with students moving in from the universities for vocational reasons.

He added that MRP’s City Square House, next to the station, is going to be another game-changer, with 83,000 sq ft already pre-let to leading global law firm DLA Piper.

There is also another 55,000 sq ft of Grade A brand-new office space available.

"Meanwhile, prestigious developments by Bruntwood, Boultbee Brooks, Kinrise, CEG and Opus North will underline Leeds’s burgeoning reputation as the most progressive city in the North of England," he added.

"2022 will be the year of the true pre-let. There are a number already in the making and there will be some wonderful news to share next year."

Richard Heslop, managing director of DE Commercial, a boutique property consultancy in Ilkley, struck a more pessimistic note.

He said that the first half of 2022 will be dominated by Covid, supply chain issues and the increasing costs of construction.

"While Covid has been with us for two years now, the latter two came to the fore in the second half of 2021," he said.

"What is certain going forward into 2022 is the uncertainty created by these issues. Having said that, the commercial property market remains resilient."

Mr Heslop expects to see the warehouse/industrial market continue to make the gains witnessed over the past 12 months, which has seen development land deals exceed £1m per acre with freehold and leasehold values gaining more than 20 per cent.

Unlike Mr Fox, Mr Heslop predicts that a cloud will remain over the office market which is now dominated by “work from home”.

"Going forward we expect more companies to develop their strategies of employees mixing home and office working," said Mr Heslop.

"This will have a dampening effect on the growth potential for this market."

However, he believes that the investment market will remain robust.

"Property yields continue to outstrip other asset classes and private investors will be unwilling to sell if there is no alternative home for their capital," said Mr Heslop.

"Demand from institutional investors, particularly for warehousing/distribution buildings, will ensure yields harden further as they look to strike deals off plan or during the early stage of construction.

"With regard to the retail market, the two overriding factors affecting demand will continue to be the high level of rates payable coupled with the inexorable rise of internet shopping. As work from home spills over into 2022, the internet will continue to win out."