Leeds Q2 Office Sector Take Up Analysis

July 15, 2010 - PRLog -- Office take up in Leeds over the first half of 2010 (273,000 sq ft) reflects a very similar story to that of 2009 (281,000 sq ft).  

Although in town take up for Q2 (47,000 sq ft) is down 45% from that of Q1 (85,000 sq ft), it is never the less comparable to the same period last year (Q2 2009 - 49,000 sq ft). The largest letting of Q2 was to Sky, with the company taking 14,500 sq ft at 2 Wellington Place. A rental of £23 per sq ft was achieved.

Leeds’ out of town market is in recovery. Take up for Q2 has increased by 15% (81,000 sq ft) from that of Q1 (61,000 sq ft) and is up 70% from the all time low of Q2 2009 (24,000 sq ft). A key point of note is that the Morrisons (10,833 sq ft) and Univar (14,200 sq ft) lettings are at Midpoint which many see as Bradford.

Incentives and rental concessions continue to be substantial, however rents have stabilised. Wilton Developments' 10 South Parade achieved the highest rent during Q2 at £24 per sq ft.

A number of sizeable in town requirements were due to come live in 2010, such as the 125,000 – 250,000 sq ft Leeds City Council consolidation. The Council was rumoured to be going to Broadgate (169,000 sq ft) but this is now officially on hold. In addition, the potential decentralisation of public sector bodies such as the NHS will be absorbed by current vacant stock (40,000 sq ft) and The Ministry of Justice’s relocation from London and the South East has dramatically decreased from 215,000 sq ft to circa 7,000 sq ft. However, that is not to say this might not alter once again with the coalition government's proposed cuts for the remainder of the year.

In Summary, the out of town office market is performing well, but there is a question as to whether this has peaked.  The city centre has experienced a double dip recession, with some agents blaming the Volcanic Ash Cloud and the World Cup! Q3 is expected to see signs of improvement in town, but only marginally.

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Notes to Editors

Ryden is an independent commercial property firm operating a full-service practice.  Service lines include Agency & Development, Investment & Finance, Professional, Building Consultancy, Property Management and Consulting.

The firm is headed by Fiona Morton, Managing Partner, with around 140 people, including 31 partners and 21 associates.

Ryden has offices in Edinburgh, Glasgow, Aberdeen, Leeds, Dundee and Inverness.  

Some recent awards include:
•   Property Week’s Industrial Agency Team of the Year (Scotland) 2009
•   EGi’s Most Active Agent in Scotland 2009
•   EGi’s Most Active Industrial & Distribution Agent in Scotland 2009
•   EGi’s Most Active Office Agent in Scotland 2009

For more information see www.ryden.co.uk

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Ryden is the largest independent commercial property consultancy in Scotland and the North of England. We have 33 Partners and over 140 staff across six offices in Edinburgh, Glasgow, Aberdeen, Leeds, Dundee and Inverness.