Perspectives 2019

For local government, South Bank represents a major regeneration priority that will facilitate inclusive growth. associated with the improved connectivity and capacity. However, there is also expected to be disruption whilst the new rail line is constructed. Public sector partners therefore face both opportunities and challenges in making the most of HS2. A good example includes the partnership agreement between London and Continental Railways (LCR) and Leeds City Council. Catherine Birks, Senior Development Manager at LCR, is working alongside Leeds City Council on a joint venture “the purpose of the partnership is to commit resource to work collaboratively in planning for HS2 and in particular in maximising the land and property benefits that are likely to arise. This includes considering mechanisms for value capture and assisting the process of facilitating occupier relocations”. The HS2 effect The recent announcements of delays, cost over runs and Government reviews have put doubt in the minds of many regarding HS2’s planned arrival in Leeds in 2033. However, plans are progressing which include a £500M station upgrade; enhancements to the existing ‘classic’ rail station, delivering a new integrated station – already one of the busiest stations outside London. It is also proposed that Northern Powerhouse Rail services (high speed services connecting the key cities across the North) will access and route through the new station. When HS2 does arrive in Leeds it will have a major positive impact on the South Bank both physically, as a result of triggering the redevelopment of substantial tracts of land alongside the proposed line and station, and economically, as a result of the agglomeration benefits CUSHMAN & WAKEFIELD 29 REGIONAL SPOTLIGHT The property market’s response The Leeds property market is enjoying something of a boom in development activity, with 2018 having seen the largest amount of office development underway since the heady heights of 2007 and 2019 characterised by cranes dominating the sky line. Some may sound a note of caution on the risk of oversupply alongside the more general concern over a cooling of the economy, but Leeds is at a different point in the development cycle with shortages of Grade A office space and strong occupier demand stimulating significant office development activity. The trend in “Northshoring” (or “Yorkshoring”) is seeing occupiers relocate from London to the regions – for instance Leeds has been a major beneficiary, with new occupiers such as Channel 4, Burberry and Sky boosting market confidence. The residential sector is also showing signs of resurgence, with a pipeline of Build to Rent schemes coming forward which could see Leeds mirror the PRS trends in Manchester city centre. It is clear that South Bank is benefiting from this renewed confidence with several commercial and residential development projects currently underway. PRS schemes are under construction on the iconic Tower Works site and City One, while developers CEG and Vastint are each bringing forward major mixed-use development schemes, which have the potential to transform South Bank. One of the most significant of these is CEG’s proposal which includes two waterfront office developments set amongst retail, leisure, hotel, residential and community uses. The development will also include 1.4 million sq ft of commercial floor space and 750 homes.