June 8, 2022
Leeds’ healthy office market shows real value for money
Leeds continues to be a heavyweight city when it comes to attracting business and growing the economy. One of the UK’s fastest growing cities with predicted growth expected to increase by 21% over the next ten years, it is a leader within the Northern Powerhouse.
The city is also one of the big six regional office centres in the UK. Leeds Office Agents’ Forum (LOAF) confirms its strong footing: overall market activity was better in Q1 2022 than the same time last year, with 32 concluded deals compared to 19.
The overall take-up for the first quarter of 2022 reached 123,463 sq ft in the city centre, compared to 168,998 sq ft in the same quarter last year, but one major pre-lease in 2021 Q1 distorts the figure somewhat. Savills says: “This clearly demonstrates that small- and medium-sized occupiers are remaining active as the market looks to continue its recovery from the effects of Covid-19. “
Savills say take up represented a 3% increase compared to the 2020-2021 quarterly average. Looking at the activity for Q1 2022, it also noted a 23% increase in the business and consumer services sectors compared to the same period last year.
It also expects a 5% increase in office-based employment in the city and as many as 7,460 new jobs in the professional, technology and scientific sectors by 2032.
The Q1 LOAF report reveals that Leeds offers exceptional value for money for business, with prime rents standing at £34 per sq ft, compared to Bristol, Birmingham and Manchester, which are all predicted to breach £40 per sq ft later this year.
“There was no change in the prime rent in Q1 2022, which currently stands at £34 per square foot. That being said, the prime rent in the market has increased significantly by 23% since 2015. Equally, average Grade A rents have increased significantly over the past six years. The current average Grade A rent is £25.55 per square foot, which represents a 3% increase on the pre-Covid 2019 Grade A average.” – Savills.
Grade A supply in the city is about 803,000 sq ft, of which approximately 531,000 sq ft – a mix of new-build and refurbishments – is to come to market in the next two years. Colliers snapshot report for Leeds earlier this year noted that although Grade A vacancy is reducing in Leeds, the completion of 12 King Street will boost supply.
12 King Street is proud to be part of the active Leeds Business Improvement District, which is working hard to make the city centre a thriving area for all sizes of businesses, and, when completed, will soon be a beating heart for high-quality office spaces that have sustainability at their core. With a BREEAM Excellent rating, 12 King Street will be in the top 10% of new, non-domestic, buildings for best practice.
If you want your office to be part of the thriving business sector in Leeds – and at 12 King Street – contact us for more information or to arrange a viewing.