Occupier take-up in the city centre totalled 216,788 sq ft in Q4 2017, with total annual take-up for the city centre exceeding 1m sq ft for the first time on record.
Standout transactions included Leeds Building Society’s purchase of 89,654 sq ft at Sovereign House, Sovereign Street in the South Bank and PwC’s acquisition of an additional 11,600 sq ft at Central Square, reflecting the continued confidence in the growth of its regional business.
The out-of-town office market was relatively subdued in comparison, with take-up totalling 55,944 sq ft and only four transactions of more than 5,000 sq ft. However, the market is characterised by a heavy reliance on ‘discounted’ grade B space and large volumes of smaller transactions, with the average transaction size just 2,152 sq ft.
Professional and financial services accounted for 36% of sector based activity, reaffirming Leeds status as the second largest legal and financial district outside of London.
However, the continued growth of the city’s TMT sector played an important role in boosting the final quarter figures. Take-up from this sector accounted for 25% of overall activity; the majority of which was focused within the South Bank area of the city where the figure rose to 38%.