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As major regional cities look set to move into higher growth trajectory
LEEDS, 24th February 2016 - A total of £2.3 billion of
commercial construction and refurbishment projects started across Yorkshire in
the last three months of 2015; a 23.1% increase compared with the same
period in 2014 according to JLL and Glenigan’s Commercial
Construction Activity Index.
Significant project starts which contributed to this level of activity
included the fit-out of Monks Cross Shopping Centre near York, the refurbishment of City House
in Leeds and the construction of a services and logistics building for Siemens
at Green Port Hull.
Looking at the wider UK picture, work began on £24.8 billion of commercial
projects (new build and refurbishments/extensions) over the 12 months to
December 2015, an increase of 4.3% on the previous year. This rise in the
overall construction activity mirrored the trend recorded for construction
output at the end of 2015 with the UK Construction PMI up from a seven month
“Beyond London and the South East,
Yorkshire is seeing significant activity coming through which is in line with
our predictions of 2016 being the year in which the major regional cities begin
to move on to a higher growth trajectory in line with stronger economic
prospects,” said Tony Stott, Head of JLL’s Building Consultancy team in Leeds.
“Construction activity will continue to be influenced by resource
pressures, the availability of finance as well as government policy and
The ‘core’ commercial sectors - offices, industrial, retail and hotels -
saw total UK volumes of £14.5 billion in 2015 (up 1.7% year on year).
Strong underlying demographics have also continued to drive appetite for
alternative sectors, notably Education. While activity dipped slightly in
the quarterly comparison, Education totalled £6.3 billion across the year
showing the most significant gains for any sector on annual basis (up 25.4%
year on year).
Jeff Pearey, lead director – North East region at JLL, added: “Looking
at the offices sector, at the end of
2015, Leeds and Manchester accounted for the greatest share of development
activity across the larger city markets outside of London.
“There is a good supply
of Grade A office space under construction in Leeds, with all of this due to
complete in 2016; notwithstanding this there is little planned for 2017.
Therefore while construction activity has increased, unless further new schemes
or refurbishments are announced, there will continue to be pressure on the
finite amount of prime office space available this year. Securing pre-let
agreements might be the only other option for occupiers looking further ahead.”
Director - Building Consultancy
+44 (0)113 235 5251
Lead Director - North East Region
+44 (0)113 261 6236
Cathrine Harrison - PR
Head of UK Regional Marketing & Communications
+44 (0)161 828 6407