Take-up of office space in Leeds city centre rose by 122% in Q1 2024 compared with the final quarter of last year, according to the latest data from the Leeds Office Agents Forum (LOAF).
In the first quarter, 31 deals totalling 249,703 sq ft transacted with the average deal size increasing from the 3,508 sq ft recorded in Q4 2023 to 8,055 sq ft.
Notable transactions included the 37,865 sq ft letting to insurance firm QBE at Bruntwood SciTech’s newly redeveloped West Village scheme (pictured).
Alex Hailey, senior director at CBRE, said: “Any quarter where city centre take-up surpasses 200,000 sq ft is a very encouraging result for investors and building owners. Take-up volumes in this quarter also underpin the healthy confidence of businesses in Leeds city centre with 12 deals over 5,000 sq ft completed, compared to seven at the close of last year.”
Toby Nield, director at Savills, added: “Wellington Place has proved to be a popular destination for occupiers in Q1. It not only attracted EY and Global Banking School, but Lloyds Bank and Cubo also committed to taking more expansion space and Evelyn Partners is expected to relocate there in the second half of the year.”
Rental levels in the city centre continued to move upward, with more than 30% of Q1 deals agreed at rents of more than £30/sq ft.
Out of town activity in remained subdued with just 14 deals completing in Q1 totalling 39,540 sq ft.
Richard Dunn, partner at Sanderson Weatherall, said: “The subdued out-of-town market activity reflects the lack of superior quality office stock now available. Supply remains a pressing issue in both markets and with little new construction expected in 2024 the choice of new or improved space for occupiers looks unlikely to change until 2026. Our advice to businesses considering their workplace requirements is to commit to space as soon as they can rather than deferring relocation decisions.”
