Office leasing in Leeds city centre for the second quarter of 2009 showed no signs of an increase as the only lettings that were generated were a result of typical market churn with no lettings exceeding a space of more than 10,000 sq ft.
Many of the office lets were the result of lease re-gearings and lease renewal due to pressure on developers to at least maintain income streams and occupiers that were not willing to spend money on a move.
The development company Jones Lang LaSalle reported that demand for office space in Leeds fell throughout the course of Quarter 2 bringing only 128,500 sq ft of enquires over the space to the market which is more than 40% less than the five year average for the same time span. Any remaining office space lets in the area is expected to come from the public sector which is gaining size in the proportion of new shared office space occupier demand.
Jones Lang LaSalle also reported that there will not be any more office space constructed in the Leeds area so there should not be a rise in vacancies although the demand has lessened. Thus the current rate of vacancies which stands at 12.9% should remain constant.
The only construction that will be completed in the Leeds area is a refurbishing project at the Crusader House which will concern 40,000 sq ft that will be available towards the end of 2010. Demand may tighten around Grade A supply in Leeds causing a shortage of new Grade A space.
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