Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019

£136

.40m

£109

.40m

£62.

70m

£55.

22m

£19.

45m

191,4

64

134,

579

222,

318

214

,994

145,

329

350,

000

350,

000

275,

000

180,

000

130,

000

5.00

%

5.00

%

5.00

%

5.00

%

5.00

%

Q2 2019 Q2 2019

Q2 2019 Q2 2019

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019

£136

.40m

£109

.40m

£62.

70m

£55.

22m

£19.

45m

191,4

64

134,

579

222,

318

214

,994

145,

329

350,

000

350,

000

275,

000

180,

000

130,

000

5.00

%

5.00

%

5.00

%

5.00

%

5.00

%

Q2 2019 Q2 2019

Q2 2019 Q2 2019

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019

£136

.40m

£109

.40m

£62.

70m

£55.

22m

£19.

45m

191,4

64

134,

579

222,

318

214

,994

145,

329

350,

000

350,

000

275,

000

180,

000

130,

000

5.00

%

5.00

%

5.00

%

5.00

%

5.00

%

Q2 2019 Q2 2019

Q2 2019 Q2 2019

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019

£136

.40m

£109

.40m

£62.

70m

£55.

22m

£19.

45m

191,4

64

134,

579

222,

318

214

,994

145,

329

350,

000

350,

000

275,

000

180,

000

130,

000

5.00

%

5.00

%

5.00

%

5.00

%

5.00

%

Q2 2019 Q2 2019

Q2 2019 Q2 2019

TAKE-UP* (sq ft)

Q2 2019 214,994

Q2 2019 vs 10 year quarterly average 56%

AVAILABILITY (sq ft)

Q2 2019 130,000

Q2 2019 vs 10 year quarterly average 59%

OCCUPIER HEADLINES

INVESTMENT HEADLINESPURCHASERS

(last 12 months)

VENDORS (last 12 months)

UK Overseas

INVESTMENT VOLUMES (£)

Q2 2019 £55.22m

Rolling 12 Month Average £247m

PRIME YIELD (NIY)

Q2 2019 5.00%

Forecast 2019 5.00%

• The leasing market remained buoyant in Q2 2019, with take-up reaching 214,994 sq ft, a fraction below (3%) Q1 2019. This meant that take-up in the H1 2019 period totalled 437,312 sq ft, 30% above H1 2018.

• The 135,915 sq ft lease to Sky Betting & Gaming at 4 Wellington Place was the largest deal of Q2 across all the UK regional cities. Consequently, the technology sector accounted for 74% of take-up in Leeds in Q2.

• The second largest deal was IWG (Spaces), advised by Knight Frank, taking 23,498 sq ft at 7 Park Row. This deal demonstrates sustained interest in the city.

• Grade A availability fell to 130,000 sq ft, 59% below the 10-year quarterly average. There are several comprehensive refurbs underway with the major speculative one at 34 Boar Lane (formerly CGU). Channel 4 has now pre-let 25,000 sq ft at Majestic, with 4 Wellington Place pre-let in its entirety.

• Office investment volumes increased to £55.22m in Q2 2019, with five deals completed. This is 19% above the 10-year quarterly average.

• Gatehouse Financial Group’s acquisition of The Mint for £41m was the largest deal to transact in Leeds in Q2 2019. The 120,000 sq ft office building is fully let to airline Jet2. Vendors Patron Capital were advised by Knight Frank on the leasing and sale.

• The second largest deal was the purchase of two office buildings at 56-58 Wellington Street for £5.35m by Westcourt Group. DCLG, Ison Harrison and Blue Apple Training are the retained tenants.

• Leeds city centre continues to attract overseas investors, with this buyer group accounting for 55% of volumes.

3%

40%

55%

5%41%

59%

3%

40%

55%

5%41%

59%

£

LEEDS OFFICE MARKET Q2 2019

KEY TRANSACTIONS

PRIME RENT (£ per sq ft)

DEVELOPMENT PIPELINE (sq ft)

£30.00

Q2 2019 Year end 2019

£32.00

Speculative

90,000

38,000

99,000

20212019 2020

Dates indicate the potential completion date of schemes under construction as at Q2 2019.Development schemes are inclusive of both new and comprehensive refurbishment.

ABERDEEN LEEDSGLASGOW BRISTOL EDINBURGH CARDIFFSHEFFIELD NEWCASTLEBIRMINGHAM MANCHESTER

OverseasUK Private

TENANT: Sky Betting & GamingTERM: 10 years SIZE: 135,915 sq ftRENT: £30.00 per sq ft DATE: Q2 2019

TENANT: IWG (Spaces)TERM: 15 yearsSIZE: 23,498 sq ftRENT: £26.00 per sq ft DATE: Q2 2019

PURCHASER: Gatehouse Bank plcVENDOR: Patron Capital PartnersPURCHASE PRICE: £41mYIELD: 6.50%DATE: Q2 2019

4 WELLINGTON PLACE 7 PARK ROW THE MINT, SWEET STREET

PURCHASER: Westcourt GroupVENDOR: UK institutionPURCHASE PRICE: £5.35mYIELD: 5.50%DATE: Q2 2019

56-58, WELLINGTON STREET

Important Notice

© Knight Frank LLP 2019 – This report is published for general information only and not

to be relied upon in any way. Although high standards have been used in the preparation of

the information, analysis, views and projections presented in this report, no responsibility

or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage

resultant from any use of, reliance on or reference to the contents of this document. As

a general report, this material does not necessarily represent the view of Knight Frank

LLP in relation to particular properties or projects. Reproduction of this report in whole or

in part is not allowed without prior written approval of Knight Frank LLP to the form and

content within which it appears. Knight Frank LLP is a limited liability partnership registered

in England with registered number OC305934. Our registered office is 55 Baker Street,

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