Office take-up activity in Leeds hit a record high in the first quarter of 2023 with 275,000 sq ft of deals recorded, according to data from Savills.
Savills said the Q1 figure was the highest since it began tracking data in 2007 and the company anticipates Q2 will also offer “robust” take-up figures, with several further pre-lets due for completion across the city.
From January to March, prime office rents grew by 3%, reaching £37/sq ft, with Savills forecasting growth of 14% between 2023 and 2027.
Between 2019 and 2022, rents in Leeds grew by 20% – the biggest uplift of the ‘Big 6’ regional cities of Leeds, Manchester, Birmingham, Bristol, Edinburgh, and Glasgow.
The strength of take-up across the city is resulting in a new wave of office developments coming forward, with several prime Grade A schemes cited for completion over the next two years.
These include 9 Wellington Place, the next phase of MEPC’s city centre development and Vastint’s commitment to develop Aire Park, a new mixed-use district on the South Bank of the River Aire – this week Vastint made a start on site on a 75,000 sq ft office building at Aire Park (pictured).
Patrick Carter, head of office agency at Savills Leeds, said: “The significant confidence in take-up is undoubtedly supporting developer activity across Leeds. When complete, this influx of new buildings will provide a much-needed boost to the supply of Grade A space within the city, driving rents upwards and offering occupiers an opportunity to acquire standout office space in one of the UK’s most exciting and dynamic markets.”
Clare Bailey, commercial research director at Savills, added: “The Leeds office market is continuing to defy the wider, more challenging, market conditions.
“The flight-to-quality narrative is evident across the city, with take-up for Grade A space reaching record levels last quarter, as businesses seek the best accommodation to attract employees back to the office whilst also aligning with growing ESG ambitions.”
