New research by financial and professional service giants Jones Lang LeSalle has unearthed a bit of a shock for the commercial property industry.
It is common knowledge within the commercial property industry that London is the market leader and the strongest aspect of the UKs commercial property market. However, the fresh research from Jones Lang LeSalle has pointed towards Leeds, as a location which is challenging London’s authority, as the commercial property markets dominant force.
The study from Jones Lang LeSalle covered 105 cities and towns across the United Kingdom and found that in regards to stable commercial property rents, Leeds was leading the way.
Jeff Pearey, head of Jones Lang LaSalle’s Leeds office, said: ‘Leeds retains its competitive edge nationally with a good range of Grade A stock still on offer and rents that compare favourably with the likes of Manchester, Glasgow and Edinburgh.’ Pearey added: ‘Enquiry levels for office space have improved over the first half of 2011 and we anticipate stronger market activity this year in comparison to 2010. This bodes well for anyone contemplating launching an office refurbishment or indeed planning ahead for more substantial developments in the city.’
The belief in Leeds’ commercial property market is demonstrated by Land Securities, who have invested heavily in the area. Speaking of the White Rose shopping centre in south Leeds, in which Land Securities have invested, Francis Salway, chief executive of Land Securities, said: ‘We made money on the development and we continue to get good investment returns on White Rose.’
As a result, it is said Land Securities could be selling off some of its other assets in order to further invest in Leeds.
Mr Salway, believes Land Securities were a front runner when investing in the commercial property market in Leeds. He declared:’ A lot of property is about timing. The best calls tend to be when you’re a little ahead of others on timing… I think we surprised people, a little, when we restarted development in London and certainly when we started the scheme in Leeds, but I think a little surprise is a good indicator.’
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