Take-up

Q4 2021 take-up, totalling 146,503 sq ft, was 4% above the five-year Q4 average. This helped Leeds to a total annual take-up of 624,192 sq ft, representing a strong recovery from 2020 with a total increase of 85%. Furthermore, this was just 1% below the five-year average as the market looks to bounce back from the coronavirus pandemic.

Grade A lettings, totalling 309,047 sq ft, accounted for 50% of overall take-up in 2021, which was just 9% below the pre-Covid-19 Grade A proportion of 59%.

Supply

Total supply at the end of Q4 stood at 864,497 sq ft. This represented an increase of 10% on the 2020 figure. Furthermore, Grade A supply increased to 394,403 sq ft at year end.

These increases can be at least partially explained by spaces at Bridgewater Place and the new development at 12 King Street being added to the supply figure during the past year. These two buildings alone contributed 109,675 sq ft to the Grade A supply total at the end of 2021.

Take-up by business sector

The Professional sector was the most active sector this year, accounting for 23% of overall take-up. This includes the 83,000 sq ft pre-let deal to DLA Piper at City Square House.

It was also a strong year for Public Services, Education & Health, where take-up increased by 68% in 2021 to 120,366 sq ft. This equated to a total share of 19% of overall take-up.

Elsewhere, the TMT sector recorded 38,276 sq ft of lettings this year, which accounted for 6% of overall 2021 take-up.

Rents

Prime rent increased by 6% in 2021, which currently stands at £34 per square foot. Furthermore, the prime rent in the market has increased by 26% since 2015. Equally, average Grade A rents have increased significantly over the past six years. The average Grade A rent in 2021 was £26.10 per square foot, representing a 4% increase on 2020 and 5.4% on 2019.

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