A new report from national property consultants Carter Jonas has identified an acute shortfall of Grade A office space in Leeds, Harrogate and York.
Commercial Edge Leeds & North Yorkshire 2014 predicts that more than 4.8 million sq ft of new office accommodation will have to be created by 2031 simply to keep up with demand.
Just short of 4.3 million sq ft will be needed in the Leeds area alone, according to the research from Carter Jonas.
Commercial Edge Leeds & North Yorkshire investigated the strength of the local commercial office market within the context of existing and potential future development opportunities.
Research also considered how key socio-economic factors, such as employment and population levels, will affect the region’s ability to keep up with demand for office space and perform economically over the next 20 years.
The report concludes that while Harrogate and York have experienced significant letting and commercial activity, Leeds will compound its position as the region’s main commercial centre.
David Aspland, Carter Jonas’ head of commercial in Leeds, said:
“With current prime Grade A availability in Leeds at approximately 250,000 sq ft following buoyant letting activity in 2013, we must now pose the question as to how Leeds – and in fact the region – will be able to meet potential demand in the future.”
“In the Leeds market, upward pressure on rental values and more limited incentive packages are expected during 2014, given the acutely limited availability of good quality stock and increasing demand levels recently reported.
“This is very positive for the commercial property market and will add to investors’ confidence in the region.”