What's Happening?
The Leeds office market experienced a rebound in the third quarter of 2025, driven by significant transactions including the relocation of the law firm Eversheds Sutherland. The city center saw a 7% increase in office take-up compared to the previous
year, with 156,675 sq ft transacted across 33 deals. The largest deal was a 47,016 sq ft pre-let to Eversheds Sutherland at Kellstone, Aire Park. Flexible workspace operator 2-Work expanded its presence, taking 26,881 sq ft across two sites. Despite constrained supply, city center office take-up remains steady.
Why It's Important?
The rebound in office take-up in Leeds indicates a strong demand for commercial space, particularly in the city center. The relocation of major firms like Eversheds Sutherland highlights the attractiveness of Leeds as a business hub. The increase in transactions and expansion of flexible workspaces suggest a growing interest in amenity-rich, sustainable office environments. This trend could lead to higher rents and increased investment in the commercial property sector.
What's Next?
The office market in Leeds is expected to continue its steady performance, with several key pre-lets anticipated over the next six months. As occupiers secure space for future lease events, the demand for Grade A office space may drive rents higher. The market dynamics suggest a focus on sustainable and amenity-rich workspaces, influencing future development and investment strategies.
Beyond the Headlines
The growth in office take-up reflects broader economic trends, including the shift towards flexible work arrangements and sustainable office environments. The demand for prime office space in Leeds could impact urban development and infrastructure planning, as businesses seek locations that offer both convenience and quality of life.
