The take-up levels of office space in Leeds reached 436,312 sq ft in the first half of this year, the highest recorded since 2013 and 62 per cent above the long-term half-year average. However, all this activity has meant that supply is now currently constricted, in particular for Grade A stock.

Total supply for Leeds city centre office space currently stands at 700,000 sq ft, the lowest on record, and over the last 12 months there’s been a 49 per cent reduction in Grade A space.

This has resulted in there currently only being eight months’ worth of Grade A supply available and space at the last remaining strongholds such as 7 Park Row, pictured above, and Platform are now largely let. We are now facing a situation where the only options for enquiries over 50,000 sq ft will require occupiers to commit to a pre-let going forward.

So where will this new space come from? It’s expected that over the next two years we will see 250,000 sq ft become available but 63 per cent of this is already pre-let. Wellington Place continues to develop out, however 4 Wellington Place, the newest addition, is due to complete in October 2020 and has already been fully pre-let to Sky Betting & Gaming. As it stands, 34 Boar Lane is the only building  available in its entirety, providing 56,000 sq ft of space.

The sustained high levels of demand have created rental growth in the city; we predict a 7 per cent rental growth by the end of the year, with top rents expected to climb from their current levels of £30 per sq ft to £32 per sq ft for city centre space. 

Turning our attention to the out-of-town office market, the story is remarkably similar. A lack of Grade A supply has led to a subdued first half of the year, ending H1 at 105,000 sq ft, which is 60 per cent down on the same time frame last year.

The only development in this market is Lumina, a 35,000 sq ft building at Thorpe Park, which is already at 50 per cent pre-let. This lack of supply has also had an effect on rental levels out of town. There’s been a 19 per cent growth over the last three years from £19.50 to £23.25 per sq ft.

Leeds has had an fantastic couple of years of occupier demand but it’s now time for the city to turn its attentions to providing a solution for the current lack of stock, be it in the city centre or the out-of- town market.

Further information

Read more: Spotlight: Leeds Offices