Of­fice build­ing the best in eight years

Yorkshire Post - Business - - FRONT PAGE -

SIG­NIF­I­CANT: This year is ex­pected to be the most sig­nif­i­cant year in the re­gional of­fice de­vel­op­ment mar­ket since 2009, ac­cord­ing to a new re­port.

CBRE’s Core Cities 2nd edi­tion re­port said the de­vel­op­ment scene in cities out­side Lon­don, in­clud­ing Leeds, has been ‘ex­tremely ac­tive’ .

THIS YEAR is ex­pected to be the most sig­nif­i­cant year in the re­gional of­fice de­vel­op­ment mar­ket since 2009, ac­cord­ing to a new re­port.

CBRE’s Core Cities 2nd edi­tion re­port said the de­vel­op­ment scene in cities out­side Lon­don, in­clud­ing Leeds, has been ‘ex­tremely ac­tive’ and the qual­ity of space is im­prov­ing as oc­cu­pier de­mand in­creases.

The six big­gest city of­fice mar­kets out­side Lon­don all look set to per­form well with an av­er­age 3.4 per cent growth an­tic­i­pated by 2022, equat­ing to an ex­tra 41,000 of­fice based jobs. Of these, Greater Manch­ester is ex­pected to ac­count for 15,800 jobs, fol­lowed by Leeds with 6,600.

How­ever, the re­port noted that the vol­ume of new starts on of­fice space has slowed over the past year, re­sult­ing in a tail-off in ex­pected com­ple­tions in 2018 and 2019. It added there is con­cern that choice for high-end build­ings may be­come lim­ited in some lo­ca­tions, in­clud­ing Bris­tol, Glas­gow and Manch­ester.

The re­tail mar­ket in the UK is still one of the most at­trac­tive in the world, the re­port said. Vic­to­ria Gate in Leeds, which of­fers an even 50:50 split of re­tail to din­ing, is ex­pected to at­tract more than £82m worth of in­vest­ment into the city over the next 10 years.

Re­tail and leisure re­mains an in­te­gral part of the of­fer to res­i­dents and visitors to cities. Alex Hai­ley, as­so­ci­ate di­rec­tor at CBRE in Leeds, said: “A num­ber of ma­jor new re­tail, leisure and of­fice schemes have con­trib­uted to the sig­nif­i­cant de­vel­op­ment suc­cess in Leeds over the past five years, which has trans­formed into a fan­tas­tic and thriv­ing city to live, work and play.

“The city can only go from strength to strength, sup­ported by the planned fu­ture in­vest­ment in its trans­port in­fra­struc­ture and in par­tic­u­lar the re­de­vel­op­ment of Leeds City Sta­tion.”

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