Out Of Town Demand Also Increases

A new report has highlighted that demand for office space in Leeds city centre in 2013 will outstrip take up in 2012.

According to BNP Paribas Real Estate, demand for out of town office space is expected to reach 440,000 sq ft - a figure which is also much higher than last year.

Richard Dunhill, BNP Paribas Real Estate's head of Leeds office, said: "Total Leeds office take-up between Q1-Q3 2013 reached 829,000 sq ft, up 36 per cent on the equivalent period a year earlier. This rise has been driven by strong transactional activity in the city centre, with three exceptional deals over 60,000 sq ft completed this year. In 2012, there was just one deal of this magnitude."

Jo Warren of BNP Paribas Real Estate's research department, added: "Total investment in Leeds offices has already surpassed the 2012 level, reflecting investor appetite for quality regional assets. Q1-Q3 2013 Leeds office investment totalled £120.9m, double the £60.2m transacted between Q1-Q3 2012.

"This upturn in activity reflects the growing investor appetite for good quality, secure regional assets offering attractive yields."

Expert Opinion

We welcome the findings of this report and recognise the increase in take up of office space within Leeds and also a growth in appetite amongst investors. <br/> <br/>“Irwin Mitchell remains cautiously optimistic about the real estate sector in Yorkshire in 2014. Our deal pipeline remains strong and although there has recently been very little in the way of speculative development within the city, I think we could see a number of schemes over the next 12 months if the current levels of positivity remain.” <br/> John Flathers - Partner