Take-up of city office space on rise as big players start to stir

TAKE-UP of office space in Leeds city centre increased by 300 per cent in the first three months of 2012, according to new figures.

Almost 156,000 sq ft of office space was taken during the period compared with 37,000 sq ft in the same quarter of 2011.

Figures from the Leeds Agents’ Forum show that while the number of city centre transactions dropped to a 12-month low of 19, the average deal size increased with eight recorded in the plus 5,000 sq ft bracket.

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The most notable transactions included the 63,552 sq ft disposal of 2 & 3 Victoria Place for Yorkshire Forward, the largest city centre transaction for over six years, the 18,800 sq ft letting to Gratterpalm at No 1 Leeds and the 17,000 sq ft letting to Dickinson Dees at No 1 Whitehall Riverside.

Richard Thornton, director at Jones Lang LaSalle, said: “Following on from the positive end to 2011, which saw a 30.5 per cent year-on-year increase, we have seen a dramatic rise in city centre take-up in the first three months of 2012.

“Last year’s increase in volumes was led by lots of smaller sized lettings; in comparison Q1 2012 activity was dominated, albeit by a smaller number, of larger sized deals pointing to improving sentiment amongst the bigger occupiers.

“Looking ahead, whilst there are signs that some of the larger occupiers are once again making decisions, there remains a degree of caution in the market.” In comparison, the out-of-town market saw less activity, with 56,000 sq ft taken over 21 deals, a six per cent increase on last year. Three deals over 5,000 sq ft were completed, including the 10,000 sq ft freehold sale of 3310 Century Way, Thorpe Park to Helplink UK.

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Roddy Morrison, director at Colliers International, added: “Occupier demand in the first three months has focused primarily on the city centre, with competition currently less intense for out-of-town office space.

“The city centre offering is very competitive at the moment. Astute, well advised occupiers are looking at commitments now in anticipation of incentive packages decreasing in late 2012 and into 2013.”

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