Office leasing activity for the combined Leeds city centre and out of town markets totalled 147,229 sq ft in Q1 2015 – a 16% fall from the 176,042 sq ft of space let in Q1 2014.
More notably, the volume of Grade A space let across both markets in Q1 2015 was 20% lower than that recorded in Q1 2014 and is the lowest volume since Q4 2012. This is, however, against a backdrop of falling Grade A availability, which is constraining occupier activity.
The city centre recorded a relatively quiet quarter, with leasing volumes down to just 87,689 sq ft – a 38% fall on the Q1 2014 total of 140,778 sq ft and the lowest level since Q4 2012.
In comparison, occupier leasing activity in the out of town market was up 69% on the Q1 2014, at 59,540 sq ft – albeit a marked decrease on the dizzy heights of Q4 2014.
Both markets continue to be underpinned by the SME sector, with only 24% of the total number of transactions for space above 3,000 sq ft.