Top office rents in Leeds expected to break all records this year

This record-busting increase is down to a combination of quality new offices being either built or comprehensively refurbished and the increased pipeline of occupier demand, the report said.

This prediction comes hard on the heels of the news that the office take-up in Leeds for the last quarter of 2022 was the highest for five years.

Eamon Fox, partner and head of development at Knight Frank in Leeds, said: “Investors will be to be selective in choice, targeting best-in-class new builds, refurbishments and buildings where a green premium can be applied.

"At the same time I expect organisations will change their stance on hybrid working and become firmer on employee time in the office, thus supporting occupational demand in the market.

He added: "The strength of legal sector continues apace, with Knights taking space at the Majestic, DLA moving to City Square House and Brabners opening a new office in the city.

"At the same time, the regions continue to attract significant new occupiers like the National Infrastructure Bank, the Bank of England and the Financial Conduct Authority, for example.

“Finally, I believe deals will get smaller by up to 30 per cent. Working from home has led both employers and employees to realise that they don’t need the same amount of space as they have needed in the past. “However, although individual space requirements may diminish, there will be a flight to quality, with occupiers willing to pay more to secure shiny new state-of-the-art workplaces that promote strong mental health and employee wellbeing.”