Office space take-up for Leeds reached 190,000 sq ft across 45 deals in the first three months of this year (Q1) according to new figures released by Leeds Office Agents’ Forum (LOAF).
22 deals totalling 145,000 sq ft were concluded in Leeds city centre over the first three months of the year. Five of these transactions were over 10,000 sq ft in size, including a new entrant to Leeds, the contact centre, TTEC who took 22,367 sq ft in West Gate and the 15,799 letting to Interactive Investor, which was the first letting at One Embankment.
The out-of-town market saw a healthy number of deals but a churn of sub-3,000 sq ft transactions dominated activity. As a result, total out-of-town take-up was muted with just 45,286 sq ft of space let across 23 deals.
Robin Beagley from WSB commented: “Covid-19 is now having a significant impact on businesses and remote working for office workers has become the new temporary norm. Set against this backdrop, it’s encouraging to see the level of city centre activity with Q1 deals concluded across a range of different businesses including digital, education and financial services. “
The Forum noted that its members were continuing to receive new enquiries for office space, but that these are naturally at a somewhat lower level than would be expected for the time of year. While in the short term, LOAF cited requirements possibly being deferred, it said many businesses will be starting to plan for the return to some normality and will in turn be looking to continue their longer-term strategic requirements.
Ross Firth from LSH added: “With Grade A availability at historically low levels and underlying demand from corporate occupiers for Leeds office space, once some level of business normality ultimately returns, we anticipate seeing an increase in the number of deals being finalised and the pace pick up again on the delivery of new-build and refurbished office schemes.”
The Leeds Office Agents’ Forum was established to collate and distribute definitive office market data. Its members are Avison Young, BNP Paribas Real Estate, Bowcliffe, Carter Towler, Carter Jonas, CBRE, Colliers International, Cushman & Wakefield, Eddisons, Fox Lloyd Jones, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Sanderson Weatherall, Savills and WSB.