Leeds office market's "popular" 2017 boosted by government and fashion deals

The Leeds office market has remained “popular” in 2017 with take up levels reaching 784,000 sq ft in the first three quarters of the year, according to new research by Savills.

Take up is 60% above the five-year average for this time of the year. This increase has been led by deals including HMRC and NHS taking 378,000 sq ft at Wellington Place, Burberry relocating to 6 Queen St and the serviced office sector expanding their presence in the city.

In Leeds, 2017 has been a record year for take up of serviced office space with levels reaching 60,000 sq ft for the first three quarters of the year.

Top rents in the city achieved £30 per sq ft according to Savills, with this expected to grow to £32 per sq ft by 2019.

In addition, the rental differential between refurbished and new office space has increased from £0.50 per sq ft to £3 per sq ft as recently completed Grade A space has attracted strong demand.

Occupier activity in the out of town market has also picked up with an array of sub-3,000 sq ft deals in York during the third quarter. Take up in the out of town markets reached 258,000 sq ft for the year to September; 18% above the five year average with Savills predicting these levels to reach 350,000 sq ft by the end of the year.

Notable deals in the out of town market include Zenith expanding its global headquarters by 18,500 sq ft at Kirkstall Forge and Smartcredit Ltd signing for 18,000 sq ft at Mayfield Business Park, Ilkley.

Paul Fairhurst, head of Savills Leeds, comments: “The Leeds office market continues to be popular with a range of occupiers causing a tight supply schedule and increasing competition for Grade A space.

“The creation of a government hub, rise of serviced office occupiers and the recovery of the out of town market has significantly boosted the take up totals so far this year, something we expect to continue into 2018.”

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