Posts with tag: tenants in Leeds

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.

Prime Rents

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.’[1]

“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.[1]

Professional

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.’[1]

‘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.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/3/leeds-continues-to-attract-strong-interest-from-investors