Without fanfare, the commercial property market in Yorkshire proceeds on its steady way. It would be a mistake to view this as unexciting because it does appear to be on the edge of a more rewarding period. At the heart of this is a significant improvement in the Leeds office market with increased activity this year and larger sized individual lettings. What is significant is that the increase is in both city centre and out of town business parks (where activity has been slow for some time). Rents have stabilised and agents believe incentives will decline.
In Leeds, the professional sector of property agents, lawyers and accountants is making the running, an indicator of a healthier market. Admittedly, the climate for new development is poor even though a shortage of prime space is looming. As everywhere in the UK, the problem is the shortage of finance. But some developers are going ahead. Examples of this are the Gregory Group which has been going at its own pace, sometimes in partnership with local authorities, in providing new space.
Scarborough remains ambitious and has a large project for Thorpe Park. Given the right product, there are investors willing to buy properties in the region, such as the Norwegians at Meadowhall. The one sector which has not performed strongly is industrial, where the surge in retailers and distribution companies taking big sheds has eased. But this has been overcome to some extent by greater demand from manufacturers for large units.