Leeds Office Market Q1 2018

Take up of Leeds city centre office space has grown by 83 per cent in the opening months of 2018, according to the Leeds Office Agents’ Forum (LOAF).

Office leasing figures released by LOAF have revealed that 191,861 sq ft of office space was taken up by occupiers in the city centre in first quarter of 2018 as part of 28 office deals. This represents an 83 per cent increase on the same period last year and the strongest first quarter recorded for five years.

Of the 28 city centre transactions to complete, the largest was the 76,000 sq ft acquisition at 33 Wellington Street by Walker Morris and the letting to the Dart Group (Jets2) of the remaining 48,272 sq ft at The Mint was the only other city centre transaction above 10,000 sq ft. Both deals came after long searches. Out of town the largest deals were Balfour Beatty and Call Credit.

Leeds remains an attractive city for ‘northshoring’ attracting a number of companies looking to set up back office operations, whilst serviced office providers are becoming increasingly interested in opening new centres in Leeds.

There remain a healthy number of live requirements within the market. Metropolis is tracking up to 40 companies searching and a further 100 occupiers approaching decisions on upcoming lease expiries over the next two years

 

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London Office Lettings in March 2018

Central London office lettings in March 2018 reached almost 1.02m sq ft of deals from 63 mid-large size transactions (5,000 sq ft+) during the month. The March 2018 figure is in line with the current monthly average of 1m sq ft and Q1 lettings reached just over 3m sq ft.

March was characterised by 11 office deals over 20,000 sq ft, which included CBRE’s 78,000 sq ft letting at 61 Southwark Street, SE1; Charles Taylor’s 66,000 sq ft pre-letting at 3 Minster Court, EC3 and SNC Lavelin/WS Atkins took 65,000 sq ft at Nova North, SW1.

Professional Services topped the table of lettings by sector, underpinned by CBRE and Paul Hastings deals. This was followed by insurance services mainly underpinned by Charles Taylor’s pre-let and another deal to Argo. Office deals ‘under offer’ in central London remained at 3.5m sq ft, but pending deal volumes are healthy in nearly all sub-markets, with over 30 deals pending.

By area, the City accounted for 40pc of the office floorspace let in March 2018 at 400,000 sq ft. The West End saw 290,000 sq ft of take-up. Midtown contributed 93,000 sq ft of lettings, plus 84,000 sq ft of Docklands deals. Current London office demand is calculated to be around 3.1m sq ft in the City and 2.8m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 624,000 sq ft (62% 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 645 ‘live’ London requirements, with deals for space of up to 1.9m sq ft due to sign in the next few months.

Cityoffices is working on its current ‘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 the report and the Cityoffices database from Andy King at andy@metroinfo.co.uk