Leeds construction sector delivers record completions in 2016

20 new construction scheme completions were added to Leeds’ skyline in 2016, which is more than double the eight from last year.

Among the projects to be completed were Victoria Gate, Central Square, Leeds’ train station south entrance and Wellington Place.

The Deloitte Real Estate Leeds Crane Survey also shows that 16 new schemes started on site in 2016 across all sectors, equalling that of 2015, the joint highest since 2007.

The Leeds office sector led the way, delivering 713,000 sq ft of space, the highest level of office space completions since 2007, alongside nearly 600,000 sq ft of retail space, more than double Leeds’ annual average.

Richard Davis, partner at Deloitte in Yorkshire, said: “The level of completions in 2016 demonstrates the appetite for development in Leeds and the desire among office occupiers for new office space.

“The retail development was also a significant boost, giving the city a premier league offering that exceeds that of many other UK cities.

“We monitor the number of new starts on site, and have seen a healthy increase in hotels under construction, which demonstrates the continued developer and investor interest in the city and a confidence that its economy will continue to grow.”

In the office market, 10 schemes were completed. Central Square, with its distinctive sloping glass atrium, was the most significant completion at 202,000 sq ft, with No5 and No6 Wellington Place at 75,000 sq ft and 104,000 sq ft also contributing to the redevelopment of the city’s business district.

There were six new office construction starts in 2016, with five of those being refurbishments of existing properties. 3 Wellington Place was the only new build development to commence, a speculative development covering over 106,000 sq ft.

In the retail sector, the completion of Victoria Gate now provides 596,500 sq ft of retail space for 23 new stores, 17 of which were new to the city.

The city’s hotel sector saw more starts on site than at any other time in the last decade. Four new developments began in 2016, set to add an additional 385 beds.

However, the city’s residential market continues to underperform, particularly in the city centre. There were only three new starts in 2016, adding 174 units to the city’s housing stock.

Richard Davis added: “One of the reasons for the slowdown in city residential development is the continued perception that Leeds has an abundance of vacant city centre flats.

“However, 2016 has very much been about the culmination of a sustained period of development and has seen the realisation of some key sites and schemes in the existing city centre. The completion of the office developments, with much of the space occupied, points to a healthy city centre economy with increased job opportunities.”

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