Q2b 29/7/10 17:56 Page 2

Inform
Office Agency
10 South Parade

Key Office Transactions Table

Occupier Area sq ft Address

BSkyB 14,450 2 Wellington Place, LS1

Demand and Take Up Univar 14,200 Aquarius House, Midpoint
Total Leeds office market take up in Q2 2010 showed a
Morrisons 10,833 Aquarius House, Midpoint
significant improvement on the same period last year,
albeit that City Centre take up was at its lowest level in PCS Union* 6,382 Town Centre House, LS2
over 5 years. *Transaction involving Sanderson Weatherall.

City Centre take up was 48,552 sq ft (Q2 2009: 49,056
sq ft) and Out of Town take up stood at 74,409 sq ft (Q2
2009: 24,278 sq ft).
The first half of 2010 is following a similar pattern to 2009
and, whilst the Q2 City Centre figures are disappointing
it can be seen that they are broadly similar to last year.
The largest deal in the quarter saw BSkyB take 14,450
sq ft at 2 Wellington Place which, itself, accounted for
nearly 30% of the total Q2 City Centre take up. The let-
ting arose from a decision by BSkyB to relocate from
Harrogate. It will be interesting to see if this develops
into a trend whereby regional occupiers identify choice
and value in Leeds and therefore choose to relocate to
take advantage of current market conditions and plug
in to Leeds’ excellent labour pool, amenities and
communications.
Out of Town; there were more encouraging levels of activity
building on Q1’s figures and representing a three-fold
increase in take up on the comparable period last year.
Out of Town occupiers were particularly attracted to the
extremely cost effective deals available on Grade B
product and it was this sector that drove the market.
In terms of volume, there were just 17 City Centre deals
during the quarter compared to 24 Out of Town and
88% of all transactions were for less than 5,000 sq ft. In
terms of take up by quality of space, 53% of the
accommodation taken in the City Centre was Grade A
whereas Out of Town Grade A take up represented 30%.

EG Award Winners
for the sixth consecutive year
Q2b 29/7/10 17:57 Page 3

Q2 2010 Snap Shot

Supply • City Centre Take Up: 48,552 sq ft
The supply of City Centre Grade A accommodation currently (Q2 2009: 49,056 sq ft)
stands in the region of 727,000 sq ft which in round terms is
approximately 34 months’ average take up. • Out of Town Take Up: 74,409 sq ft
However, only a relatively small proportion of this available (Q2 2009: 24,278 sq ft)
supply is high quality new build space in the prime central area. • Grade A supply: C. 34 months
As a result, we believe that there is an opportunity going
forward for investors/developers holding the best space &
average take up
sites to maintain headline rents and reign in incentive packages. • Prime Rent: £27.00 psf
This lack of prime product and a dearth of new stock coming
through should underpin Wilton Development’s decision
• Transaction Size: 88% of deals
to proceed with the delivery of 10 South Parade which is due < 5,000 sq ft
to come on stream later this year. Billed as “Grade A +”
accommodation, quoting rents are at £28 psf on the best
space in the building and Wilton secured two further small Incentive packages remain very building, tenant and lease length
pre-lets this quarter. specific although as a rule of thumb a rent free period of around
24 months could be expected on a 10 year unbroken lease.

City Centre - Quarterly Take Up Outlook

2005 - 2010 At the half-year stage, 2010 take up is broadly following last year’s
pattern.
Occupiers appear to be largely sitting tight and waiting for the
effects of the election/budget to filter through. With private
sector occupiers adopting a cautious approach and severe
SQ FT

cuts expected in the public sector, it is likely that the market

Annual Q1 Q2 Q3 Q4
Prime Rents
Prime City Centre headline rents remain c. £27.00 psf in the
City Centre. However, in real terms net effective rents continue
to fall as incentive packages increase as landlords with built
stock compete for the relatively low number of active
occupiers that remain in the market.
Out of Town prime headline rents are in the region of £17.50
psf although again true net effective rents are falling as
incentive packages become increasingly generous.
will remain challenging for the second half of the year
although for those occupiers able to move some very
attractive deals are on offer.
Whilst overall supply levels in the City Centre remain healthy
there is a relative lack of top quality space in the prime central
area and no new stock of note on the horizon. This will be of
some comfort to those investors/developers holding prime
stock. However, the outlook for fringe second-hand accom-
modation remains particularly tough.
Award Winning Service
Sanderson Weatherall is delighted to have
been awarded the coveted Estates Gazette
“Property Advisor of the Year: Yorkshire
and the North East Award” for the sixth year
in succession. Many thanks to all who voted
for us.
To discuss our Agency services in greater detail please do not
hesitate to contact either Richard Dunn or Glenn Levison.

25 Wellington Street, Leeds, LS1 4WG Contacts:

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DDL: 0113 221 6137 DDL: 0113 221 6138
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