Q2 was positive for the Leeds office market with take-up totalling 268,000 sq ft, more than three times higher than Q1 and 15% above the 10-year quarterly average. This was driven by notable occupational sales, the largest seeing Luminate Education Group acquire the 71,000 sq ft Livingstone House to operate a new health and social care department for Leeds City College.
Office vacancy rose 82 bps over the quarter, driven by an increase in Grade A vacancy, which reached 2.6%. This reflected developments currently under construction entering supply, including Princes Exchange and 2 Wellington Place.
Office prime rents remain at £46.00 psf for completed transactions, however, are set to rise driven by growing rental pressure at Grade A locations as occupiers continued to seek high-quality space across the market. Rent-free periods have decreased from 12 to 9 months for a 10-year lease.