The second quarter of 2019 saw 213,341 sq ft of office space taken in the city centre a 47% increase on the same quarter last year. At the half year point, city centre transactions total 435,659 sq ft which is 29% higher than this time last year.
There were 27 city centre deals in Q2 with the stand-out transaction the pre-let of No4 Wellington Place to Sky Betting & Gaming / The Stars Group which is due for completion in autumn 2020. At 135,915 sq ft, this is the largest office letting to complete in Leeds since 2017 when the Government Property Agency acquired its 378,000 sq ft new “hub”. Other significant deals included IWG Spaces acquiring 23,428 sq ft at 7 Park Row underlining the continued demand from serviced and co-working operators and the leasing of 8,008 sq ft at 6 East Parade by Credit Karma – a new entrant to the Leeds market.
The lack of supply, as opposed to levels of demand is likely to affect future take up performance in the Leeds office market. This constrained supply will help fuel continued rental growth in H2 of this year and into next and we expect an increase in pre-let activity as larger businesses plan further ahead in order to secure new space.