Leeds office boost as resi underperforms

Leeds saw 20 major construction scheme completions added to the city skyline in 2016, more than double the eight from 2015. SEE ALSO: Deloitte Real Estate Crane Survey 2017 LEEDS DEVELOPMENT SNAPSHOT The city saw 712,960 sq ft of office space completed in 2016, the highest level since 2007, according to the Deloitte Real Estate Crane Survey. The survey also found more than double the average annual total of retail floor space was completed in 2016, although this was solely down to the 596,500 sq ft at Hammerson’s Victoria Gate. Hotel building activity was up by 72% on the previous year, with 385 beds across four schemes under construction. However, the city’s residential market was found to “underperform”, with only three new starts in the city centre, of which two were taking advantage of permitted development rights to convert office into residential. There were only three completions in 2016, adding 174 units to the city’s housing stock. Deloitte Real Estate partner Simon Bedford said: “Leeds perhaps just hasn’t caught the wave that Birmingham and Manchester have done this year. It is interesting looking at the pipeline for next year. “Leeds has got a lot coming through and I think it will begin to pick up. I think we see it as a long-term trend, more residential in city centres, and I think Leeds will be there next year.” Future development is forecast to refocus activity away from the traditional core and onto the South Bank regeneration area, which has the potential to double the size of Leeds city centre and include 4,000 new homes. KEY FINDINGS • To send feedback, e-mail Louisa.Clarence-Smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette DELOITTE REAL ESTATE CRANE SURVEY 2017   • UK regions show record construction activity • Tourism and education lead Belfast boom • Birmingham sees record construction activity • Leeds office boost as resi underperforms • Manchester city living booms RELATED ARTICLES   • London crane survey 2016: build starts drop by 42% • London office construction down 42% • The 10 biggest investment deals of 2016 • Regional office take-up slides post-Brexit • Manchester achieves highest Q4 lettings since 2010 • Briefing: What’s the local plan?