Leeds office market outperforms other ‘big six’ regional cities in Q1

Prime office rents in Leeds have seen the strongest growth across the UK’s “big six” regional cities, the most recent data from Savills has revealed.  According to the research, rental prices for workspace in Leeds rose by 3% in Q1 2023, reaching £37 per sq ft, with Savills forecasting a further 14% growth between 2023 and 2027.  Over the past three years, the city has seen rents increase by 20%, the biggest uplift when compared with other regional cities, including Manchester, Birmingham, Bristol, Edinburgh and Glasgow. The continued rental growth comes on the back of a record level of take-up, reaching 275,000 sq ft, making it the best first quarter on record since Savills began tracking data in 2007. The biggest deal saw Lloyds Banking Group sign up for close to 124,000 sq ft at MEPC’s Wellington Place.  Looking forward, Savills expects the second quarter of 2023 to also offer robust take-up figures, with a number of further prelets due for completion across the city.  The consultancy predicts the strength of take-up across the city to result in a new wave of office developments, with a number of prime grade-A schemes cited for completion over the next two years. These include 9 Wellington Place (pictured), as well as 1 and 3 South Brook Street. In addition, Vastint has committed to develop Aire Park, a new mixed-use district on the south bank of the River Aire.  Clare Bailey, commercial research director at Savills, said: “The Leeds office market is continuing to defy the wider, more challenging, market conditions.  “The flight-to-quality narrative is evident across the city, with take-up for grade-A space reaching record levels in the last quarter, as businesses seek the best accommodation to attract employees back to the office while also aligning with growing ESG ambitions.” To send feedback, e-mail evelina.grecenko@eg.co.uk or tweet @Gre_Eve or @EGPropertyNews Discover which agents have been most active in Leeds so far this year >> Photo © MEPC