UK: The Northern Powerhouse - What Does Development Hold For Leeds City Centre?

As 2015 draws to a close, we are already looking forward to 2016 and the publication of our latest Leeds Crane Survey.

Throughout 2015 the city has continued to see a significant number of new construction starts with the number of new starts continuing to increase from 2014. Whilst 2014 was the year of new office development, in 2015 we began to see a mix of developments coming forward. The residential market in particular is gathering momentum and we have witnessed the first new starts in the city centre since 2012.

With a stronger residential market in 2015, permitted development rights has allowed a number of office-to-residential schemes to come to fruition. The city anticipates the return of new build residential schemes as developer appetite, for PRS in particular, increases and the market continues to improve.

There is continued demand for office development in the city centre, presented most notably with Sky taking space at Leeds Dock and Addleshaw Goddard signing up to space at 3 Sovereign Square. Developers continue to press ahead with speculative development, demonstrated by Bruntwood commencing the redevelopment of City House.

Work also continues on Victoria Gate, with the first phase due to open in October 2016. Hammerson has secured a number of high end retailers and leisure operators which will continue to further cement the city's position in the retail market, along with the continued investment at the Merrion Centre and Arena Quarter.

The recent past demonstrates that Leeds is a city which can compete on an international level, evidenced by the success of the Tour de France. Future schemes such as Victoria Gate Phase 2 will help us realise this further, and will advance the city's future as it bids for European Capital of Culture 2023. As the devolution deal continues to move forward, Leeds City Core can only benefit from more centralised decision making.

This leads to the question: what does the 2015 city centre development mean for the future of Leeds? We will report the conclusions from our research at our 2015 Crane Survey in February. If you have a significant scheme in the pipeline, please make sure we capture your development or site.

We look forward to reporting back in the New Year, wishing all a prosperous start to 2016.

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