The Biggest & Best Portal to the Professional Property, Workplace and Built Environment Community

Sunday, 25 February

Quids In - Old Space Almost as Much as New in Leeds

Continued demand for office space in Leeds has led to rents for refurbished space rising to £26 per sq ft (£280 per sq m) - only £1 lower than those for new build Grade A offices - according to new research from Savills.

Rents for new build Grade A space in Leeds currently stand at £27 per sq ft (£291 per sq m), with average rents across all offices in the city rising 4% in 2015. This has been driven by demand from companies looking to capitalise on relatively low property and living costs.

Savills reports that, in response to demand, Leeds has seen the second highest volume of new development starts in the UK regions.

With much of this development due to come to market this year, supply will be improved and Savills therefore expects the gap between new build and refurbished rents to widen once more, although some of this space has already been pre-let. For example, M&G’s 220,000 sq ft (20,438 sq m) Central Square scheme is due to complete this summer and has already seen a significant pre-let to PwC. MEPC’s Wellington Place has also seen several pre-lets including Squire Patton Boggs and Equifax, while Bridges Ventures’ 6 East Parade has just signed Dentsu Aegis.

Paddy Carter, associate director of office agency at Savills, comments: “Leeds will see a step change in the quality and variety of space available to occupiers this year, and this is already attracting significant interest from a wide range of occupiers.

"Across the UK regions, the long term average for annual take up of Grade A space is 4.6 million sq ft (427,340 sq m). However, there is less than one year’s supply due to come to the market over the next three years according to the latest Regional Office Market Review & Outlook report from Savills. Demand is being driven by companies in sectors such as TMT, which is estimated to create approximately 700,000 jobs in the regions over the next 10 years.

"At the end of 2015, there was 3.5 million sq ft (325,150 sq m) of speculative development in the pipeline across the UK regions but 28% of that has already been pre-let. The lack of available space is driving demand for value-add office refurbishment opportunities to help plug the gap, with January 2016 marking the 41st consecutive month of refurbishment activity."

Picture: Leeds...or a small part of it

Article written by Robin Snow

Share



Related Articles

Buildings Of The Future - Time To Rethink The Bottom Line

The availability of measurement models that accurately reflect return-on-investment is often the biggest hurdle in the design, construction and maintenance of Buildings...

 Read Full Article
Are You Experienced?

BT has launched its first 'Customer Experience Lab' (in Dundee) to test new ways of supporting its 1.1 million business customers across the UK. Designed to...

 Read Full Article
Revolution Strikes at Heart of Government

The winners of the third annual The Way We Work Awards showcase the best examples of the Civil Service making government work better. The Cabinet Office’s third...

 Read Full Article
London and Norwich Shine at BCO Awards

Norwich’s The Enterprise Centre was named as the Best of the Best workplace at the British Council for Offices’ (BCO) annual National Awards in London last...

 Read Full Article
Failing to Attract and Keep Talent is Big Threat Says Survey

The annual (this is the sixth) CBRE European Occupier Survey, released on the morning of Thurs 14, says  42% of the world’s leading companies see labour and...

 Read Full Article
Workplace Week - Children In Need

Hello Fresh, Macquarie, Zpg, Expedia and Moo are just some of the big names participating in Workplace Week 2017 to showcase workplace innovation...

 Read Full Article
Sinking Feeling Over Leisure Facilities

Leisure centres could fall into a state of disrepair and even be forced to close without urgent new investment from government, councils have warned. The Local...

 Read Full Article
Double Diamond

A UK-wide facilities support firm based in the Midlands has doubled its office space as it looks to accelerate its growth. Diamond Facilities Support has purchased a...

 Read Full Article
Piccadilly Lights - LandSec's London Landmark Re-lit

London’s iconic Piccadilly Lights were switched back to life on October 26 after a nine month period of renovation. A spectacular display of colours, which were...

 Read Full Article
The State Of The Nation

The UK Green Building Council (UKGBC) has launched a series of online infographics designed to profile ‘The State of Sustainability in the UK Built...

 Read Full Article