Leeds office market update Q4 2017
2017 was a record breaking year for Leeds city centre office take-up, which totalled 1,014,615 sq ft across 141 office transactions - the first time the million sq ft mark has ever been reached in the city.
The public sector hub deal, which saw the UK Government pre-let 380,000 sq ft at Wellington Place for HMRC and NHS Digital, was the largest office deal of the year in Leeds, and one of the single largest lettings outside of London.
Richard Dunn, head of office agency and spokesperson for LOAF, said: “With total Leeds city centre take-up surpassing full year transactional levels seen in Birmingham, Bristol and Glasgow last year, this activity reinforces our city as a major office location outside of London.”
Strong demand from serviced office sector operators resulted in a number of deals during 2017, including Regus at Pinnacle (10,200 sq ft), Co-working space at 10/12 East Parade (30,527 sq ft), Tech Hub at Platform (c. 30,000 sq ft), Our Space at Yorkshire House (12,750 sq ft) and Wizu taking 9,500 sq ft at The Leeming Building. The professional services, TMT and financial services also remained very active, with occupier demand continuing to be focussed on new-build, Grade A space, as demonstrated by the 50,000 sq ft of new lettings at Central Square during Q4.
During Q4 of 2017, Leeds office market take up totalled 268,247 sq ft, reflecting a 48% increase on Q4 2016.
In the city centre, take up totalled 216,893 sq ft across 43 transactions. The largest deal of the quarter saw Leeds Building Society acquire 80,654 sq ft at Sovereign House.
Leeds out of town take up stood at 51, 354 sq ft across 25 transactions. The principle transactions of the quarter were the 7,085 sq ft letting at Stockdale House in Headingley Office Park to NHS, and Priestley Homes’ purchase of the 7,856 sq ft Shepherd House at Elland Road.