Last year, Yorkshire was hit hard by economic slowdown and public sector cuts. However, 2011 provides some interesting statistics that suggest Leeds is making a comeback within the serviced office sector.
Throughout 2010, Yorkshire battled against a visible problem of oversupply, with office space developments including No 1 Leeds and The Mint, hugely under occupied. 2011 however, has seen some big deals in the serviced office industry, with Asda now renting 40,000sqft of office space at The Mint at a rate of £21 per square foot.
In addition to this, i2 Offices are now occupying 15,000sqft at No 1 Leeds, and UBS have taken 1,000sqft of office space at 1 City Square, which has the highest rental rate of 2011, at £25 per square foot.
In the third quarter of 2011, business centres in Leeds city centre were leasing 115,970sqft of office space to tenants, which is up from 69,140sqft during the same period in 2010. This means that Leeds is now on course to reach 400,000sqft of occupied space by the end of this year.
However, it may not be plain sailing just yet, as the regional development agency, Yorkshire Forward, is being scrapped in 2012, meaning 20,00sqft of office space will be vacant at their Victoria House headquarters.
Another set back to contend with may be the abolishment of the Government Office for Yorkshire and Humber, which will be vacating their 60,000sqft Lateral Building headquarters next year – although the government intends to backfill this centre immediately.
Even with these obstacles, and the slow development of business centres such as City Square House, Lumiere and Wellington Place, predictions indicate that new occupiers will be on the lookout for office space in early 2012.
Leeds is also the largest centre for financial and business services outside of London, with 116,500 people working within these sectors. This means Leeds is an excellent location for businesses to rent office space.
To find out more about office space in the City of Leeds, talk to Search Office Space now on 0800740 80 80 to discuss your requirements.