Leeds Looks Lively
COMMERCIAL PROPERTY REGISTER - YORKSHIRE
February 2010
Dire predictions of the impact of the recession have largely proved to be unfounded in Yorkshire with the office markets in Leeds and Sheffield performing above expectations.
That is the positive part of the past year; the bad part has been the difficulties of maintaining the pace of regeneration in a number of cities, notably Bradford and Barnsley. Some other towns and cities, such as Wakefield, have seen much needed retail/mixed use projects put on ice.
After a slow nine months in Leeds, the final quarter of 2009 saw lettings of 13,935 sq.metres (150,000 sq.ft.) bringing the total to 38,089 sq.metres (410,000 sq.ft.), slightly less than in the previous year.
Jonathan Shires of CB Richard Ellis commented: “This year looks interesting as there are a number of unnamed requirements. But 2009 was a difficult year, despite securing the largest deal for 5 years and establishing a new headline rent in Leeds (£27 a sq.ft.).” Take up was down 25% on the 10 year average.
CB Richard Ellis, acting jointly with WSB Property Consultants on behalf of GE Capital Real Estate, has leased 57,000 sq.ft. to Yorkshire Water Limited at Livingstone House, Clarence Dock. Ryden acted for Yorkshire Water in a deal which represents the largest letting in the city centre since 2005. Terms of the deal are undisclosed.
Yorkshire Water has taken a 10 year lease on the part ground and floors 2-5 inclusive at the 71,955 sq.ft. Grade A, BREEAM rated building. From February 2010 the new offices will serve as the base for Yorkshire Water's newly created Asset Delivery Team, consisting of 550 Yorkshire Water and contract partner employees.
Leeds is now well provided with Grade A space, such as the 11,241 sq.metres (121,000 sq.ft.) Latitude Red and the slightly smaller Mint. Only the refurbished 3,252 sq.metres (35,000 sq.ft.) 10 South Parade, is due for completion this year, although, for the longer term, plans have been approved for some major schemes in the West End area.
The consensus is that this year will bring happier times to Yorkshire and, as far as the out of town market is concerned, it has started well.
