University projects build up hopes of recovery

The fourth annual Leeds Crane Survey, by property consultants Drivers Jonas Deloitte, counted just five new developments but said development activity in the city has been buoyed by an active higher-education sector and the re-ignition of Trinity Leeds.

Leeds's universities accounted for six developments in last year's report and made up three of the five schemes in this year's report, covering the 12 months to September.

Leeds University is building two new developments with Miller Construction, including the 12m New Law School and the 28,000 sq ft Archive Building – both due to be completed in 2011.

BAM Construction is also involved in a joint venture with the university with the 6.5m Energy Building which will deliver a 47,000 sq ft extension to its engineering complex.

Drivers Jonas Deloitte's Leeds Crane Survey also highlighted positive developments in the city's retail sector with Land Securities' 350m Leeds Trinity now under construction after having been temporarily mothballed in 2008.

The consultants believe that Trinity, which is the only major retail project under development outside of London, will help to boost Leeds's ranking in Experian's league table of UK retail centres.

While Hammerson's 1.5m sq ft Eastgate Quarters remains on hold, the developer has recently revealed revised plans for the scheme, which Drivers Jonas Deloitte says reflects a growing confidence in the city

In the residential sector, the survey counted just two new starts this year with Urban Splash's Saxton development scheduled to complete in 2010.

Drivers Jonas Deloitte suggests that the low level of completions will lead to greater competition for existing stock and points to research from Leeds University which found that city apartment blocks are achieving average occupancies of more than 90 per cent.

The Crane Survey reports that almost 10,000 units remain in the pipeline with planning permission ready to be delivered when market conditions return.

Student housing has remained an active sector with two new developments completing this year.

The survey records no new starts this year which reflects a saturated market – Leeds has more bedspaces per student than the national average.

Along with its residential market, Leeds's office development has been the most affected by the economic downturn with the lowest level of completions in 2010 for 13 years.

Maple Leaf Securities' Indigo Blu remains the only scheme under construction, and Wilton Development's 10 South Parade the single new start this year.

However, with the delivery of new Grade A space reaching a near halt, Drivers Jonas Deloitte says the market has rebalanced and recovery could pick up once demand returns to absorb the temporary oversupply.

John Weir, director and head of Drivers Jonas Deloitte in Leeds, said: "The low level of development in Leeds is a reassuring sign for the city this year as supply begins to correct itself in the face of weaker demand.

"Once the economic recovery gathers momentum, Leeds's oversupply of office space will slowly be absorbed and provide developers who have already got permission in place to dust down their plans and consider capitalising on a return to rental growth.

"The fundamentals of property, not least location, will prove important once again.

"The University of Leeds has also continued to invest significant sums of money in new additions to its estate and this should help bridge the gap between public and private sector development before the Government's austerity drive takes hold.

"Meanwhile, Trinity Leeds is the big success story in UK property development this year and testament to the long-term confidence in the city's ability to regain the upward trajectory it found before the financial market crash of 2008."

Bigger and better for students

The students' union at Sheffield University has officially re-opened following a 5m facelift.

It now features an activity and sport zone for students to exhibit and perform their work, and a striking new entrance and double-height atrium space, linking a number of areas that were previously disjointed. The union employs more than 900 people and is headquarters to in excess of 200 sports clubs and societies,

Facilities have also been improved, with the building now featuring a larger shop and new eateries.

Vice-chancellor Professor Keith Burnett said: "The new refurbishment of our award-winning students' union is a demonstration of the university's commitment to providing our students with the very best facilities, to ensure they have a first-class university experience."