Demand for flexible workspace in Leeds city centre is outstripping supply, according to new data from global real estate firm, Cushman & Wakefield.
Office operators throughout the city are now reaching over 80% occupancy levels, while the lack of new or refurbished Grade A stock is restricting growth in the sector.
Commenting on the state of the market Harry Finney (pictured right) of Cushman & Wakefield’s Office agency team commented: “Serviced office occupiers are typically attracted to grade-A stock; however, there is a lack of grade-A stock being delivered this year which is likely to hamper future growth.”
Harry adds: “We are aware of approximately 336,337 sq ft of new build or comprehensively refurbished office stock currently under construction, the majority of which is now committed to. Of this figure, approximately 22% is likely to be operated as a form of serviced office.”
The Leeds serviced office sector accounts for just 4.07% of office stock in the city’s centre – approximately 484,481 sq ft.
Cushman & Wakefield expects the flexible office market to continue to expand rapidly in 2020.