Boost in office take-up for Leeds city centre as new figures show 50% increase

At the half-year point, city centre take-up totalled 412,756 sq ft, a 53 per cent increase compared with the same period in 2022.

Commenting on behalf of LOAF, Eamon Fox from Knight Frank said: “The flight-to-quality from occupiers seeking the best-in-class office space has continued, which helped bolster take-up in the second quarter.

“In all, we have seen a good momentum of activity in the city centre over the first half of 2023.

“A shortage of Grade A city centre offices until spades go in the ground to start on new developments will be a real issue this year and into next. It is clear that the best quality stock continues to be in high demand.”

The largest city centre letting in the period was to HM Courts and Tribunal Service (HMCTS) who took 26,328 sq ft in Bruntwood’s West Gate scheme and will move from offices on East Parade later this year.

Other notable deals included the lettings at CEG’s Globe Point, with Reed Smith and Specialist Computer Centres each taking individual floors of 6,479 sq ft and 4,290 sq ft respectively.

At 12 King Street, Reward Finance Group and Page Group committed to a total of 11,649 sq ft and Wellington Place attracted Hill Dickinson and Begbies Traynor.

With office availability reduced in the city centre, the Forum says prime rents have continued to increase, showed by several deals being concluded at rents of £36 per sq ft or more for brand-new Grade A space.

Multiple office spaces within the city centre are, however, under construction.

In May, the £100 million City Square House development, located next to the new Channel 4 headquarters in Leeds centre, held its topping out ceremony.

The 12-storey building, developed by MRP and built by McAleer and Rushe, is set for completion later this year, and will total 140,000 sq ft.

A large portion of the building’s office space has already been signed for by global law firm DLA Piper, who will take seven storeys at the development, totalling 83,000 sq ft. This deal represented the largest private sector pre-let deal in Leeds in the past 20 years.

Markel, a leading SME-focused expert in providing integrated insurance, tax and legal services, has also taken 20,000 sq ft at City Square House on a 15-year lease.

The Leeds out-of-town market experienced a more subdued second quarter with 54,830 sq ft of take-up across 15 deals recorded.

The largest deal to complete was at White Rose Park, where Leeds Community Healthcare NHS Trust took 18,836 sq ft

Another deal of note was Inseego, the fleet management software business, who signed for 5,005 sq ft at South Central.

Clem McDowell from Carter Towler, said: “Set against the challenging macroeconomic backdrop, the out-of-town market still showed a pleasing level of activity, with take-up just short of 100,000 sq ft for the first half of this year.

“While the number of deals is down, activity has continued to come from a broad range of occupiers and shows the attraction of business parks with ready accessibility, public transport links, and good onsite parking and amenities.”