Leeds city centre office take-up is set to surpass 2012 levels. For the first time in six years, figures are on par with pre-recessionary levels, according to research conducted by BNP Paribas Real Estate.
The total Leeds office take-up between Q1 and Q3 2013 reached 829,000 sq ft, an increase of 36 per cent over the same period one year ago.
This rise has been driven by a strong increase in transactions in the city centre, with three large deals for properties over 60,000 sq ft completed this year.
Total investment in Leeds offices has surpassed the 2012 level, which reflects investor interest in acquiring quality regional assets.
In the first nine months of the year, Leeds office investment amounted to £120.9 million, which was double the amount invested in the same period last year.
While market confidence is on the rise, the pick-up in activity levels should not be over-emphasized.
There is still a certain level of caution hanging over the recovery and developers are reluctant to commit to developing a new building without signing a significant pre-let.
Office rent levels remain unchanged at approximately £25.00 per sq ft. Favourable incentives are being offered to attract tenants at present, but with anticipated rising demand for premium space, rents may start to rise in 2014.
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