Watch this space as election raises hopes of boosting market confidence

Figures compiled by Sanderson Weatherall show that take-up in 2010 for Leeds city centre was 84,747 sq ft, comprising 30 deals, compared with 103,451 sq ft and 21 deals in the same period in 2009.

Demand for smaller office space made up the majority of the deals in the first quarter. The biggest was for 11,620 sq ft at West Gate, by Skills for Care.

But all eyes are currently on whether Leeds City Council will relocate to new offices this year, which would be a huge boost for the market.

Glenn Levison, partner in office agency at Sanderson Weatherall in Leeds, said: "This year is off to a careful start as the number of deals and floor space occupied in first quarter indicate.

"However, there is still activity in the market with Grade A office space, such as King Street, being occupied, and we expect accommodation that is well located and offers flexible terms, to continue doing well this year.

"The council's decision on its 100,000 sq ft office space requirement is expected shortly, but there is still no guarantee that the council will relocate.

"If it chooses to, then this could provide a big boost for the market and would help the 2010 take-up figures.

"I expect that as, the year goes on, that market take-up will improve and I am hopeful that the general election will instil confidence in the market as a whole, which, in turn, will encourage movement again."

Steven Jones, agency surveyor at Ryden, added: "The commercial property market is slightly behind the recovery of the economy. At the moment, occupiers are only moving when their leases expire and they look for cheaper deals.

"I am cautiously optimistic that there will be a few bigger deals as we move into the second half of the year."

Meanwhile, take-up in the Sheffield office market exceeded the five-year average for the city in 2009, reaching 320,000 sq ft compared with the five-year figure of 300,000 sq ft, according to research by BNP Paribas Real Estate.

It also highlighted Leeds's low supply pipeline, with just 2.8 years of supply remaining, which is one of the lowest levels of supply in the North.