Findings from our latest quarterly Office Market Pulse report show that office take-up across Leeds and Sheffield increased by 27% and 47% respectively during Q4 2011.
Take-up totalled 197,717 sq ft and 90,357 sq ft, compared with 133,118 sq ft and 45,118 sq ft in the same period last year.
Five year high for office take-up
The report also revealed that occupier take-up for 2011 was 679,613 sq ft across Leeds and 350,410 sq ft across Sheffield. Compared to 2010, totals for the year were 535,258 sq ft and 238,054 sq ft. The 2011 figures represent a five year high for office take-up in Leeds and Sheffield.
Rob Darrington, from our Office Agency team in Sheffield, said: “Occupier take-up has gone up despite economic conditions, but there is a lack of grade A office space and new build development in both Leeds and Sheffield.”
Big lettings driving market
One of the biggest office lettings within Sheffield recently went to internet service provider PlusNet, who occupied 53,000 sq ft at The Balance. Leeds City Centre take-up figures were pushed to 398,159 sq ft. This was the highest level in three years due to Towry Law taking up space at Toronto Square and B Sky B taking an additional 10,235 sq ft at 2 Wellington Place.
Prime rents increasing
Prime rents remained at £20 per sq ft in Sheffield City Centre. In Leeds City Centre, prime rents were £25 as landlords chased deals. However, with supply diminishing, rents of grade A stock in prime locations have started increasing.
Effective asset management strategy advice
Adam Varley, Head of Office Agency in Leeds, added: “It’s unlikely we’ll see much new build activity across Yorkshire in the immediate future. The shortage of grade A space gives landlords of existing older buildings an opportunity to start pursuing an effective asset management strategy. It will provide much needed office space to occupiers who are increasingly demanding when looking at relocations”
Adam concluded: “Our quarterly Office Market Pulse report is extremely useful in today's challenging market. It gives property owners and occupiers access to in-depth knowledge of the office markets in Leeds and Sheffield, which will help them make the best informed decisions for their business.”