Channel 4's recent announcement that Leeds will house their new HQ follows Burberry, Perform Group and HMRC in their re-locations, as north-shoring to the city picks up pace notes Savills. Channel 4's requirement for 30,000 sq ft (2,787 sq m) is set to be absorbed by existing city centre office space, however with new build stock now all but depleted following a spate of lettings at the year end, refurbished space will now provide an attractive option. At 7 Park Row, a substantial refurbishment has added 40,000 sq ft (3,716 sq m) of stock to the market which is attracting strong interest. Currently Leeds city centre has no Grade A space available for requirements over 40,000 sq ft (3,716 sq m) until the refurbishment at the Majestic is completed later this year.

Take up of office space in Leeds reached circa 650,000 sq ft (60,386 sq m) last year says Savills. This has been driven by a diverse spectrum of occupiers including the professional, public and financial sectors. Key deals included the letting of 20,500 sq ft (1,904 sq m) of space to Investec at 3 Wellington Place and serviced office provider Gilbanks signing for 19,800 sq ft (1,839 sq m) at 1 Park Row.

Looking ahead to 2019, the market is set see continued pressure on supply levels, however there will be several projects coming online to ease this. This includes 4 Wellington Place that will bring 155,793 sq ft (14,473 sq m) to the market and 29-30 Boar Lane, set to provide 59,000 sq ft (5,481 sq m) of office space.

Paul Fairhurst, director in the office agency team at Savills, comments: 'It is fantastic to see Leeds bear the fruits of north-shoring as companies begin to see the benefits of being located in the city. This has been helped by the policy and infrastructure improvements that have opened Leeds up and helped occupiers settle.

'2019 will see the paucity of new build stock lead to more significant pre-let activity both in the city centre and out of town. The serviced office sector, so prevalent in other regional cities, will no doubt come to life further as Leeds builds on its success in attracting footloose occupiers. The city's best kept secret is out: attractive workspaces, a very strong business community, an enticing health and wellbeing offer and all this while being affordable!'

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Savills plc published this content on 23 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 January 2019 15:53:09 UTC