- Upswing in Leeds’ out-of-town office market activity in third quarter of 2015
Upswing in Leeds’ out-of-town office market activity in third quarter of 2015
The Leeds Office Agents’ Forum (LOAF) has released its quarterly update on the state of the city’s office market with figures showing that occupier take-up reached 112,103 sq ft in Leeds city centre in the third quarter of 2015 (Q3) over 36 deals. Q3 activity in the out-of-town market reached 72,314 sq ft over 21 deals compared with just 35,305 sq ft over the same period last year.
With less than three months until the end of 2015, year to date city centre take-up stands at 412,918 sq ft while 169,551 sq ft has been transacted in the out-of-town market. The Forum anticipates that the final full year city centre total will be in the region of 575,000 – 600,000 sq ft approximately 25% above the five year running average.
The largest city centre office transactions to complete were the acquisition of 17-19 York Place by the Church of England and the letting of 8,718 sq ft to Secretary of State for Health at 1 Trevelyan Square on Boar Lane.
Richard Dunn, Partner at SW comments: “What is encouraging about this quarter is the overall level of activity - in all we saw 57 deals completed. In comparison with the rest of 2015, we’ve seen no larger sized city centre ‘trophy’ deals or pre-lets – just a healthy number of ‘bread-and-butter’ transactions across the 5,000 – 10,000 sq ft size bracket.”
In the out-of-town office market the letting to Reed Elsevier of 12,306 sq ft at City West (Building 3) was the largest sized deal to complete in the third quarter.
Richard added: “We have seen the highest level of out-of-town take-up in quarter three. This was a very much a case of quality over quantity as four of these transactions were for over 10,000 sq ft which bodes well for the state of the market longer term.
“The ongoing supply issue for good quality space has been well documented. This scarcity means headline office rents continue to creep upwards and the new builds and refurbishments coming through are pushing city centre quoting rents towards £30 per sq ft.”
The Leeds Office Agents' Forum was established by the leading surveying firms based in Leeds to collate and distribute definitive market data. Its members are BNP Paribas, Carter Towler, CBRE, Colliers International, DTZ, Eddisons, Fox Lloyd Jones, Bilfinger GVA, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Sanderson Weatherall, Savills and WSB.
Q3 2014: Leeds Offices market updateDownload Inform market update Q3 2014 Expectation for another good year continues to materialise, with quarterly take up ahead of the 10 year average. Between July – September 2014 city centre take up figures reached 143,451 sq ft across 34 deals, with the largest transaction being the Department of Health sub-lease on the 8th floor of Bridgewater place.
Expectation for another good year continues to materialise, with quarterly take up ahead of the 10 year average.
Between July – September 2014 city centre take up figures reached 143,451 sq ft across 34 deals, with the largest transaction being the Department of Health sub-lease on the 8th floor of Bridgewater place.[fulltext] =>
Take-up figures for the year now stand at 387,438 st ft, with some significant pre-lets expected to be signed by the end of the year.
Inform is a quarterly market update complied by Sanderson Weatherall. For more information, please contact Richard Dunn.
Leeds city centre second highest office take up figures on recordDownload Market Update Q4 2015. The last quarter of 2015 saw one of the highest volumes of deals on record for Leeds city centre. Between October – December 2015 city centre take up figures reached 267,187 sq ft across 53 transactions.
The last quarter of 2015 saw one of the highest volumes of deals on record for Leeds city centre. Between October – December 2015 city centre take up figures reached 267,187 sq ft across 53 transactions.[fulltext] =>
This left year end take up figures at 680,105 sq ft – the second highest total since records began, and up 25% on 2014. The largest transactions of the quarter were the two pre-let deals to Sky at New Dock totalling 97,022 sq ft, also making it the largest transaction of 2015.
In the out of town market year end take up figures were up 13.23% on last year at 268,041.
Richard Dunn, partner in our Leeds office, commented on the upcoming year: “The future of the Leeds office market looks very promising, with major city centre schemes opening this year and the majority with significant pre-lets. We have also seen a resurgence in the out of town market, which will hopefully continue with the arrival of quality stock in the planned developments at Thorpe Park, WROP and Kirkstall Forge.”
Largest out-of-town office deal in over two years boosts Leeds' first quarter office take-upDownload Market Update Q1 2016. Office occupier take-up in Leeds continued to show strong demand during the first quarter of 2016 with the out-of-town market outperforming the city centre for the first time since Q2 2012.
Office occupier take-up in Leeds continued to show strong demand during the first quarter of 2016 with the out-of-town market outperforming the city centre for the first time since Q2 2012.[fulltext] =>
According to the Leeds Office Agents' Forum (LOAF), a total of 141,174 sq ft of office space was transacted in the out-of-town market between January and March this year – a 30% increase on the previous quarter and 137% increase on the same period in 2015. This compares with a total of 121,908 sq ft of city centre offices taken up in the first three months of 2016, a 39% increase compared to quarter one 2015.
Activity was buoyed by the first pre-let at Kirkstall Forge which saw Zenith Intelligent Vehicle Solutions take 45,000 sq ft in what was the largest out-of-town office deal for over two years. Of the 25 out-of town-deals to complete in the first quarter of 2016, five were over 10,000 sq ft.
Richard Dunn, Partner in our agency department and LOAF spokesperson, said: "A healthy combination of volume and size of deals over 10,000 sq ft means out-of-town market conditions are arguably at their most buoyant for four years.
"We saw the first significant out of town pre-let for several years at CEG's Kirkstall Forge which has kick started the development of this 56-acre site and most importantly, the first office building on the scheme. This also helps to underpin Scarborough's confidence in commencing the only fully speculative out-of-town office building at Paradigm, 3175 Thorpe Park , which is likely to set a new benchmark for out-of-town rents when completed towards the end of this year."
In the city centre, 22 occupier office deals transacted over the first three months with an average size of 5,500 sq ft. Just three deals over 10,000 sq ft completed: RSM securing 25,539 sq ft at Central Square, the letting to Hestview Ltd of 39,605 sq ft at No 6 Wellington Place and Dentsu Aegis Network agreeing a pre-let on 13,800 sq ft at 6 East Parade.
Richard added: "With five city centre schemes - 5 Wellington Place, Central Square, 6 Queen Street, 6 East Parade and 3 Sovereign Square - all scheduled to reach practical completion in Q2/Q3 this year, Leeds offers a UK leading choice of new offices backed by competitive rents and access to a diverse and skilled workforce. These all make our city very attractive to both local businesses as well as companies looking to north shore from the expensive and overcrowded London and south-east markets."
The Leeds Office Agents' Forum was established in 2010 by the leading surveying firms based in Leeds to collate and distribute definitive market data. Its members are Sanderson Weatherall, BNP Paribas, Carter Towler, CBRE, Colliers International, DTZ, Eddisons, Fox Lloyd Jones, Bilfinger GVA, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Savills and WSB.