Leeds is enjoying a sustained period of high tenant demand, according to the latest data released by Knight Frank.
This in turn is driving rents up, with a number of national and international investors looking to purchase in the city.
The firm predicts that rents in prime areas of the city could rise from £27.50 per sq ft to £30 per sq ft by the end of the year, which would be an all-time record.
With the Northern Powerhouse driving it forwards, Leeds is becoming an attraction for young professionals, both for work and study. Add to this a thriving nightlife and many landlords are starting to see the potential that the city undoubtedly offers.
Eamon Fox, head of office agency at Knight Frank in Leeds, observed: ‘£27.50 sq ft is currently the established norm [for rents in the city centre], but I anticipate rents in new builds such as 6 Queen Street, Wellington Place, 3 Sovereign Square and Central Square will hit £28 sq ft in the very near future.’
“And rents won’t stop there. I see them moving forward to £30 sq ft as occupiers compete for the best space in these buildings, as well as in Bruntwood’s Platform by Leeds Station. These are exciting times for the Leeds office market,’ he added.
Knight Frank’s data shows that professional services accounted for 28% of the total take up in the last year. The Technology, Media and Telecoms sectors made up 25%.
Mr Fox went on to say: ‘Grade A availability currently sits at about 441,000 sq ft, which includes 280,000 sq ft of brand new Grade A accommodation delivered during the second half of last year at 3 Sovereign Square, Central Square, 5 Wellington Place and 6 Queen Street.’
‘New supply in 2017 will comprise 271,000 sq ft, made up of 120,000 sq ft, 40,000 sq ft, and 120,000 sq. ft at 3 Wellington Place, 6 Park Row and Platform respectively,’ he concluded.