There was no new office letting in the second quarter of 2009 in Leeds that exceeded 10,000 sq ft and most of the activity that did happen was due to churn. The Jones Lang LaSalles’s Leeds Offices Update report for the quarter showed that the number of take ups had declined but the figures were still not alarming when compared to the figures of the previous five years.
The stagnancy in the Leeds office market is because the business owners do not want to shift base during such a shaky period. Landowners are mostly interested in getting a secure source of income and companies are trying to avoid spending in shifting from one place to another, which is why there have been only lease renewals and adjustments to desk space rental.
This lack of new demand has also brought new developments to a halt in the city. The Jones Lang LaSalle report also showed that there has been a fall in the demand for office space, as only 128,500 sq ft of space has been enquired about in the second quarter of 2009. This is a 40% fall from the five year moving average.
Public sector is where the bulk of the leasing activity is expected to happen in 2009. Given the fact that the private sector is so dormant, a take up of only 350,000 sq ft is expected in the Leeds city centre by the end of 2009.
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