Commercial market ''strong in Leeds'' - commercial mortgages

25 July 2008

In news that is likely to interest holders of commercial mortgages, new figures show demand for office lettings remains healthy in Leeds, despite nationwide difficulties elsewhere in the property sector.

According to Savills'' latest bulletin for the city, take-up of office space increased five per cent in the first half of the year compared with the average for the same period from the last five years.

It rose from 239,821 sq ft to 252,262 sq ft, while the research also encouragingly highlighted 90 per cent of 2008 deals completed so far are in the sub-15,000 sq ft size bracket.

The top rent in Leeds for the first half of 2008 was also up - the £27 per sq ft deals at Bridgewater Place and Whitehall Riverside marked an eight per cent increase on the headline rent of £25 per sq ft set in the last quarter of 2007.

Paul Fairhurst, director and head of Savills'' Leeds office, forecasts: "With the high quality office space expected to come out of the Leeds market over the next few years, rents are likely to push £28 per sq ft on pre-lets within the sub-10,000 sq ft bracket."

Birmingham is another city enjoying a strong commercial market, according to the Birmingham Mail. A recent report released by Atisreal suggests the office space property sector could hit a golden patch in 2010.