Office building the best in eight years
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.”