Q3 data shows increase in Leeds office take-up
Office letting activity across the combined city centre and out-of-town has reached 681,000 sq ft during 2024 so far, with figures for the third quarter showing an increase across both markets.
The data from Leeds Office Agents Forum shows that city centre office take-up in Q3, 2024 reached 146,372 sq ft across 33 deals, an increase of 7% compared to the same three-month period last year and 47% higher than in Q2, 2024.
Among the key city centre transactions highlighted was the University of Law’s commitment to 15,241 sq ft at Yorkshire House on Greek Street.
The largest transaction of the quarter, it underlines the ongoing importance of the legal and education sectors in the Leeds office market.
Another notable city centre deal was with Wizu, a locally headquartered flexible workspace provider, which took 13,860 sq ft at One Embankment, further strengthening Leeds as a hub for flexible office solutions.
Clem McDowell, director at Carter Towler commented: “As city centre supply levels continue to tighten, upward pressure on rents remains. The highest prime rent achieved in Q3 was £39.00 per sq ft, and prime rents are expected to reach the £40 per sq ft plus mark soon.”
The out-of-town office market reached take-up of 112,893 sq ft across 22 deals. This was the highest quarterly total since Q1, 2021, and a 55% increase compared to the same period in 2023.
Key out-of-town deals included Persimmon Homes acquiring 13,134 sq ft at Temple Point, and flexible office space provider 2 Work securing 10,026 sq ft at Plateworks House in Seacroft.
Eamon Fox, partner at Knight Frank, added: “It has been an encouraging quarter for the out-of-town market, which recorded its highest activity level in over three years.
“A series of significant deals underscores the strong demand for high-quality office space outside the city centre, where we are seeing an asset class start to compete with its city centre counterpart, in terms of sustainability, technology, transport, and the decarbonisation challenge.”
Members of LOAF include Avison Young, BNP Paribas Real Estate, Bowcliffe, Carter Towler, Carter Jonas, CBRE, Colliers, Cushman & Wakefield, Fox Lloyd Jones, JLL, Knight Frank, Lambert Smith Hampton, Sanderson Weatherall, Savills, and WSB.
