Leeds

Take-up in Leeds city centre reached 123,463 sq ft during the first quarter of 2022, with take-up falling slightly below the level seen during Q4 2021.

Professional services firms were the most active business sector throughout the quarter, accounting for 34% of take-up. Key deals included HG Construction which leased 14,126 sq ft at Belgrave Hall and Lupton Fawcett which signed for 11,510 sq ft at 2 The Embankment. Business Services and Manufacturing & Services sectors were also particularly active, comprising 19% and 18% of take-up, respectively.

Supply has shown little change since the end of Q4 2021, increasing by just 1%, the vacancy rate also moved slightly from 7.9% in Q4 2021 to 8% at the end of Q1 2022. There is currently 766,200 sq ft of office space under construction in Leeds city centre of which 11% is pre-let. 11 and 12 Wellington Place are due to compete this year, becoming the most sustainable office buildings in Leeds upon completion.

Prime rents in Leeds remained stable throughout Q1 at £34 per sq ft with rent free periods remining at 24 months on a ten-year term.

Meanwhile, in the out-of-town market, take-up totalled 105,434 sq ft, almost double Q4 2021 and 27% above the five-year average. Key deals included Williams Lea which leased 16,617 sq ft at Leeds Valley Park and Cennox which signed for 10,620 sq ft at 2 City West. Prime rental tone in Leeds’ out-of-town market remains at £24.75 per sq ft.

TAKE UP: Q1 2022

City Centre

123,463 sq ft

Out of Town

105,434 sq ft

HEADLINE RENT

City Centre

£34 per sq ft

Out of Town

£24.75 per sq ft

UNDER CONSTRUCTION

Total

766,205 sq ft

Prelet

11%

PRIME YIELD

Q1 2022

5.25%

TOP FIVE DEALS: Q1 2022

KEY SECTOR ACTIVITY: 12 MONTHS TO Q1 2022

Professional services

36%

Business services

19%

Manufacturing & industry

18%

TAKE-UP

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