CoStar Analysis: Office and logistics development on the rise again in Leeds

By Jamie Campbell - Tuesday, October 17, 2017 13:12

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Leeds's office and logistics development markets are highly active at present. CoStar real estate analyst Jamie Campbell explores.

Caddick Group’s recent purchase of the former Polestar Petty print works, as reported by CoStar News, will provide a further boost for the Leeds development pipeline.

The graph shows Leeds office construction.

The news follows a burst of office development in 2016, as five prime buildings delivered in Leeds City Core: Central Square (239,525 sq ft), 6 Wellington Place (105,855 sq ft), 3 Sovereign Square (93,850 sq ft), 5 Wellington Place (75,255 sq ft), and 6 Queen Street (70,785 sq ft). These new schemes have been met with strong occupier demand for prime space, and as such, almost 70% of recent deliveries are either already occupied or under offer. Leeds office supply will be enhanced further when speculative work completes at 3 Wellington Place (103,595 sq ft) in December this year, while construction is due to start imminently on 7-8 Wellington Place (399,340 sq ft) following the recent pre-let to the Government Property Unit.

Logistics development in the wider Leeds market is on the rise too. Construction picked up strongly in 2015–16, including build-to-suit units for Amazon (80,000 SF) and John Lewis (51,000 SF) at Logic Leeds, along with Poundworld’s new 524,000 SF hub at Link 62 in the Wakefield submarket. New space has continued to arrive in 2017. Notable deliveries this year so far include TK Maxx’s 635,000 SF hub in Knottingley, the largest warehouse built in the market since 2010, while construction also commenced in the fourth quarter on three units totalling 100,000 SF at Logic Leeds.

CoStar’s latest Leeds office and logistics market reports can be viewed in the links provided.

jcampbell@costar.co.uk

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