Leeds snapshot - July 2013

Overview

• H1 2013 in the Leeds office market has heralded the strongest levels of Grade A take-up and absorption since before the onset of the credit crunch (see Figure 2). Grade A absorption reached 127,348 sq ft, the highest figure since June 2007. Total absorption across all Grades in H1 2013, for Leeds as a whole, was lower at 83,661 sq ft caused by release of Grade B space in core locations (see Figure 4).
   
• Leeds take-up reached 436,192 sq ft in H1 2013 which was in excess of the entire 2012 figure and the highest half year total amongst the ‘big six’ UK regional cities. Take-up of offices in Leeds has now risen in each of the last seven half year periods (see Figure 3). City core take-up reached 294,408 sq ft in H1 2013, a rise of nearly 100% on the previous six months. Deals in 2013 to date included the largest individual office transaction within central Leeds since 2004. Yorkshire Building Society took 76,413 sq ft at Highcross’s Broad Gate scheme. There were nine deals in excess of 10,000 sq ft which compares to a total of just seven in the whole of 2012.
   
• Leeds City core availability is down by 16% year on year but, more significantly, Grade A vacancy across Leeds is now down to 7%, the lowest figure for over a decade. For occupiers seeking 20,000 sq ft over not more than two consecutive floors, just four options are available within the City core and a further two units within the Southern Gateway. Outside the City core there is just 59,889 sq ft of Grade A quality office space.
   
• Despite falling vacancy, prime rents remained unchanged between £25-£26 psf (see Figure 5) with the highest figure this year (£25 psf) being achieved at the Leeds City Council/Sovereign Leeds/Muse Developments Sovereign Street scheme. This was pre-let to KPMG with construction having commenced in June.