Leeds Offices Step Up

Recent research by Avison Young showed a strong start to 2019 in Leeds city centre with 222,000 sq ft take-up in 39 deals, 56% above the 10 year average. TMT occupiers accounted for the lion’s share of activity, and with Channel 4’s announcement that it intends to acquire 25,000 sq ft at Rushbond’s Majestic this commitment is likely to act as a further stimulus for the continued growth of this sector in the Leeds region. Banking and finance combined with professional services also accounted for a third of transactions.

Take up was led by the 71,000 sq ft letting at M&G’s Central Square to Link Asset Services, a share registry provider. There were also five transactions above 10,000 sq ft, the largest of which was 20,700 sq ft to WYG plc at 3 Sovereign Square as well as Unite Union (12,800 sq ft) and Opera North (11,000 sq ft). There were two further 5,000 sq ft deals to engineering companies BAM Nuttall and Buro Happold. The Government Hub announced its move in 2017 and will open in the next 12 months. Metropolis has published details of 20 future relocations and 36 companies considering a move in recent months.

Out-of-town mover activity was more subdued but there was also a greater than average level of take-up for deals below 5,000 sq ft across both markets.

Channel 4’s deal to lease three floors of the 66,000 sq ft Majestic, the former cinema located opposite the train station will account for one office scheme. Along with 34 Boar Lane (46,000 sq ft) this is currently undergoing a major refurbishment in the city centre. The speculative 4 Wellington Place (155,000 sq ft) is also under construction in the city centre and due for completion by the end of 2020. The only new development completed recently was the newly refurbished 33 Wellington Street of which 15,000 sq ft is still available.

Metropolis is tracking around 40 companies looking for office space in the Leeds area.

Central London Office Market May 2019

Central London office lettings in May 2019 reached 1.3 million sq ft, from 40 mid-large size office transactions (5,000 sq ft+) during the month. The May 2019 deals volume figure is well above the current monthly London average of 1m sq ft.

May was characterised by 14 office deals over 20,000 sq ft, which were led by EBRD’s 365,000 pre-let at 1-5 Bank Street, E14; along with the letting of the refurbished 25 Cannon Street to Brewin Dolphin; WeWork at Film House, Soho, W1; Parliamentary Estates taking space at 64 Victoria Street, SW1, plus Quilter at Senator House in EC4 .

Financial Services topped the table of lettings by sector, compiled by Metropolis, underpinned by the EBRD pre-let and Brewin Dolphin’s new City of London HQ. This was followed by business services led by WeWork and Signature (Regus) deals. Public services, led by Parliamentary Estates and professional services with Cadwalader and Comply were also well represented.

Office deals ‘under offer’ in central London stood at 3m sq ft, and pending deal volumes are healthy in nearly all sub-markets, with a number of deals in solicitor’s hands.

By area, the City accounted for 34% of the office floorspace let in May 2019 at 437,000 sq ft. The West End saw 350,000 sq ft of take-up. Docklands 365,000 sq ft, Midtown contributed 109,000 sq ft of lettings and Southbank 21,000 sq ft. Current London office demand is calculated to be around 3.7m sq ft in the City and 3m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month, reached a healthy 960,000 sq ft sq ft (74% of the monthly total), as transactions for new space maintained the recent strong showing. Availability is dominated by secondhand space in all London markets.

Metropolis research is currently monitoring 625 ‘live’ London office requirements, including a large volume of requirements from the banking and finance sectors, with pending deals for space of up to 1.5m sq ft due to sign in the next few months.

Central London Office Lettings in September 2018

Central London office lettings in September 2018 reached just over 1m sq ft from 50 mid-large size office transactions (5,000 sq ft+) during the month. The September 2018 figure is at the current monthly London average of 1m sq ft.

September was characterised by 15 office deals over 20,000 sq ft, which were led by the Linkedin’s 83,000 sq ft deal to pre-let ‘The Ray’ office scheme on Farringdon Road, EC1; Beazley Insurance took 75,000 sq ft pre-let at 22 Bishopsgate, EC3 and Live Nation took a 66,000 sq ft pre-let at 34-36 St John Street, EC1.

IT related services topped the table of lettings by sector, compiled by Metropolis, underpinned by the Linkedin deal. This was followed by business services led by a number of lettings to WeWork and Orega. Insurance, professional and media were also well represented. Office deals ‘under offer’ in central London remained at 3.9m sq ft, and pending deal volumes are healthy in nearly all sub-markets, with a number of deals pending.

By area, the City accounted for 31pc of the office floorspace let in September 2018 at 310,000 sq ft. The West End saw 150,000 sq ft of take-up. Midtown contributed 450,000 sq ft of lettings. Current London office demand is calculated to be around 3.8m sq ft in the City and 3.2m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month, reached a healthy 530,000 sq ft sq ft (53% of the monthly total), as transactions for new space resumed their recent strong showing. Availability is dominated by secondhand space in all London markets.

Metropolis research is currently monitoring 640 ‘live’ London requirements, with deals for space of up to 1.7m sq ft due to sign in the next few months.

Cityoffices is close to completing on its autumn ‘Skyline Survey’ in London. Further details of office scheme planning applications and consents, with scheme by scheme detail are listed on the Cityoffices.net website. Details on Metropolis and the Cityoffices database from Andy King at andy@metroinfo.co.uk