What has led to a stellar year for the Leeds office market?

The Leeds office market has remained popular in 2017 with take up levels reaching 784,000 sq ft in the first three quarters of the year.

This is according to new research by real estate agency, Savills.

Take up is 60% above the five-year average for this time of the year.

This increase has been led by key deals including HMRC and NHS taking 378,000 sq ft at Wellington Place, and Burberry relocating to 6 Queen St.

The serviced office sector expanding their presence in the city has also added to the increase.

The firm notes average lease lengths across regional cities as a whole has fallen by 3% as serviced office providers increase their presence in the market.

Leeds has seen a record year for take up of serviced office space, with levels reaching 60,000 sq ft  for the first three quarters of the year.

Top rents in the city achieved £30 per sq ft according to Savills, with this expected to grow to £32 per sq ft by 2019.

At the same time, the rental differential between refurbished and new office space has increased from £0.50 per sq ft to £3 per sq ft as recently completed Grade A space has attracted strong demand.

Paul Fairhurst, head of Savills Leeds, comments: “The Leeds office market continues to be popular with a range of occupiers causing a tight supply schedule and increasing competition for Grade A space.

“The creation of a government hub, rise of serviced office occupiers and the recovery of the out of town market has significantly boosted the take up totals so far this year, something we expect to continue into 2018.”