Experts looking at the commercial property in Leeds point to a vibrant future for the city after many years of uncertainty and lack of investment.
Commercial property spend is increasing slowly after decades of staying relatively stagnant. Here are a few highlights of the current state of the commercial property market in the northern city of Leeds.
- Strengthening Sectors
One of the reasons for the increase in strength in the commercial property market has been the strengthening of certain sectors in the Leeds economy.
These include the digital sector and the healthcare sector. Both these sectors have been important to the UK as a whole and are highly important to Leeds as a city.
- Improvements in Office Space
Commercial People says that the state of office space in the city has vastly improved in recent years, and this alongside improvements in infrastructure and amenities has meant that there is now a greater variety of office properties available, and that offices are higher quality. Therefore, the cost of office space has been rising and there has been greater competition for the most desirable buildings.
- Improvements in Infrastructure
Transport is steadily being improved in Leeds and this will help connect the city, make it easier for workers to commute into the city, and increase productivity.
As a consequence of these changes there have been many more office jobs created in the city and the area has been growing much faster than the UK average.
- Office Take-Up Expected to Grow
Experts in the city expect there to be a 94 percent higher take-up on office space at the end of 2017 compared to 2016. This would make 2017 the best year on record. While take-up is still a little slow, a number of major companies are earmarked to commit to prime commercial property locations which will drive up occupancy.
- North Shoring Continues
The practice of “north shoring” – moving employees from London to the northern cities – is helping to regenerate Leeds and to increase demand for commercial property in the city. One of the advantages of living in Leeds is the price of property. In West Yorkshire, the average price paid for a house in the last 12 months was £180,215, according to government figures.
This is significantly lower than the cost of a property in the southern counties, and the price has also dropped in the past year. The influx of tech companies and London-based multinationals has been a huge boost for the region. In particular, tech companies like Sky are taking advantage of fast network speeds and an improved technological infrastructure. All this leaves Leeds in a particularly strong position in terms of commercial property and economic improvement.
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