Take-up

Q1 2022 take-up for the Leeds city centre market totalled 117,000 sq ft. This total was spread across 32 completed transactions which was 33% above the five-year average for completed Q1 deals. This clearly demonstrates that small- and medium-sized occupiers are remaining active as the market looks to continue its recovery from the effects of Covid-19.

Grade A take-up of 32,000 sq ft accounted for 28% of the overall take-up total in Q1 2022. This included the 11,500 sq ft acquisition by Lupton Fawcett at 2 The Embankment.

Supply

Total supply at the end of Q1 stood at 782,000 sq ft. This represented a decrease of 10% on the Q4 2021 total. Furthermore, Grade A supply decreased by 23% to 305,000 sq ft at quarter end. This is indicative of the continued resilience of Grade A demand and the ‘flight to quality’ that is present within the market. As a result, Grade A supply remains extremely limited, particularly for the prime space in Leeds city centre.

The total vacancy rate decreased in the first quarter of 2022 by 0.6% to 6.4%. Furthermore, Grade A vacancy rate also decreased by 0.7% to just 2.5% at quarter end.

Take-up by business sector

The Business & Consumer services sector was the most active sector in Q1 2022, accounting for 25% of overall take-up. The largest transaction in the sector was the 8,750 sq ft Grade A letting to recruitment agency Charlton Morris at 34 Boar Lane.

Elsewhere, the TMT and Serviced Office sectors also started 2022 strongly, each accounting for 15% of the overall take-up. Serviced office operator 2Work’s 14,000 sq ft acquisition at Bank House was the second-largest letting of the quarter.

Rents

There was no change in the prime rent in Q1 2022, which currently stands at £34 per square foot. That said, the prime rent in the market has increased significantly by 23% since 2015. Equally, average Grade A rents have increased significantly over the past six years. The current average Grade A rent is £25.55 per square foot, which represents a 3% increase on the pre-Covid 2019 Grade A average.

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