Leeds office take-up remains strong in Q3 – LOAF | Yorkshire Property News

Leeds office take-up has remained strong in the third quarter of 2021 as the market continues to recover from Covid-19, according to data from the Leeds Office Agents’ Forum (LOAF).

It found that 202,543 sq ft of city centre office deals completed in the third quarter of this year (July-September) and 110,602 sq ft in the Leeds out-of-town market.

Of the 34 city centre deals, the largest, in terms of size, was the commitment by global life sciences company Labcorp to a redevelopment at CEG’s Drapers Yard. When complete, Labcorp will occupy 68,345 sq ft in Leeds’ South Bank.

Highways England and home credit and consumer finance provider IPF each agreed deals for more than 15,000 sq ft of offices in 2 City Walk and 26 Whitehall Road, respectively.

Alex Hailey, from CBRE, said: “City centre activity in quarter three has continued to show a marked recovery since early summer with a 130 per cent increase compared to the same period last year. Over the last nine months, 477,688 sq ft of office space has transacted setting the city firmly on track for another strong year of take up.

“Several city centre transactions this quarter have also been completed at rents ranging from £32-34 per sq ft underlining that occupiers remain keen for good quality workplaces.”

In the out-of-town office market, 110,602 sq ft of space was taken up in Q3 2021 across 27 deals. LOAF cited the leasing deals of space at the likes of Thorpe Park, where Mosaic Tile Company and Galliford Try each agreed rents of £23.50 per sq ft.

Elsewhere, serviced office operator, WIZU acquired 14,037 sq ft at Lawnswood Business Park. The largest transaction was the 18,240 sq ft freehold purchase by NIC Services Group of at Burley Bridge Mills. 

Nick Salkeld, from Fox Lloyd Jones, added: “The resurgence of the out-of-town market has been a key feature of the post lockdown Leeds office market, with the combined total for the last nine months, nearly triple the level of activity seen across the whole of 2020.

“With the city centre also performing strongly, we are confident that these levels of occupier activity will continue into 2022, and beyond, as businesses continue to decant from older accommodation into better quality space that meets their current and future needs.”

The Leeds Office Agents’ Forum is made up of Avison Young, BNP Paribas, Bowcliffe, Carter Towler, Carter Jonas, CBRE, Colliers International, Cushman & Wakefield, Eddisons, Fox Lloyd Jones, JLL, Knight Frank, Lambert Smith Hampton, OBI, Ryden, Sanderson Weatherall, Savills and WSB.