Leeds city centre office take-up reached 267,187 sq ft in Q4 2015 – a fraction below the highest quarterly take-up ever recorded of 284,067 sq ft in Q4 2014.
Q4 was also the out-of-town market’s best performing quarter of 2015, with take-up totalling 98,490 sq ft, albeit some 16% less than the same period in 2014.
Activity in both markets was almost entirely driven by churn deals, which is reflective of the lack of readily available large floor plates and limited speculative developments. Of the 75 deals to complete, eight were for space above 10,000 sq ft, including BSkyB’s pre-let of circa 97,000 sq ft at Leeds Dock in the city centre. The largest out-of-town deal was LSH’s letting of 16,122 sq ft at One City West to Cascade HR.
The primary trigger which prompted the most acquisitions of office space over 5,000 sq ft in the city centre during Q4 was lease events at 59%, while the primary driver which influenced the final decision was specific physical need at 41%.
Looking back across 2015 as a whole, take-up in Leeds city centre reached a total of 680,105 sq ft - nearly 42% ahead of the five-year annual average of 480,000 sq ft. Total out-of-town activity for 2015 reached 280,347 sq ft – the highest annual take-up for two years, highlighting an underlying confidence returning to the occupier market.