Leeds offices maintain strong quarterly take-up

Office take-up for the first three months of the year was 266,700 sq ft, building on the 210,300 sq ft posted in the final quarter of last year.

Figures released by Leeds Office Agents’ Forum reflect a renewed confidence in the city centre, the group said, as businesses invest in their workplaces.

There were 34 city centre deals in the first three months, a 116% increase on the same quarter last year, LOAF said.

The largest letting was to Lloyds Banking Group, which is due to relocate to 124,400 sq ft at MEPC’s 11&12 Wellington Place by spring 2024.

Also significant was the 20,000 sq ft prelet to Markel Insurance at MRP’s City Square House, due for completion early in 2024.

Jeff Pearey, head of UK regional offices at JLL, said: “The continued activity from already well-established businesses in Leeds has led to a healthy level of city centre take up.”

According to JLL, Leeds recorded total take-up of 618,200 sq ft in 2022.

Alex Hailey, head of office agency for Yorkshire and North East at CBRE, added: “Along with the letting to Markel Insurance another significant deal was the 16,500 sq ft freehold purchase of 8 St Paul’s Street by insurance broker W Denis, another well-established occupier in Leeds.

“Prime office rents in Leeds now reflect the diminishing levels of new grade A stock, and are comfortably established at £36/sq ft, with further increases likely this year.”

Leeds’s out-of-town market also kept the pace it established during the final quarter of 2022. In the first three months of 2023, there were 60,300 sq ft of take-up recorded across 18 deals. The largest letting was to an established Leeds operation, Nonwovens Innovation & Research, which committed to the entire building at Cast House comprising 19,800 sq ft.

Patrick Carter, director at Savills, concluded: “In the suburban office markets, White Rose Park continued to perform strongly, attracting Hisense, the consumer electronics brand, to 1 Munroe Court. This deal underlines the fact that businesses are prepared to commit to the best space for headquarter premises.”

Leeds Office Agents’ Forum is made up of Avison Young, BNP Paribas Real Estate, Bowcliffe, Carter Towler, Carter Jonas, CBRE, Colliers, Cushman & Wakefield, Fox Lloyd Jones, JLL, Knight Frank, Lambert Smith Hampton, Sanderson Weatherall, Savills, and WSB.