What's Happening?
Cushman & Wakefield has reported a significant rebound in the Leeds city centre office market during the third quarter of 2025. The Leeds Office Agents Forum (LOAF) data shows a total office take-up of 156,675 sq ft across 33 deals, marking a 7% increase
compared to the same period last year. A key highlight was the pre-let of 47,016 sq ft to Eversheds Sutherland at Kellstone, Aire Park, which is expected to move in by early 2027. This deal is one of the most significant lettings in recent years. Additionally, flexible workspace operator 2-Work expanded its presence in Leeds, taking a combined 26,881 sq ft across two city centre sites. Despite constrained supply, the city centre office take-up remains steady, with expectations for several key pre-lets over the next six months.
Why It's Important?
The rebound in the Leeds office market is crucial for the local economy, indicating a recovery and increased business confidence. The significant pre-let to Eversheds Sutherland suggests a strong demand for office space, particularly in amenity-rich and sustainable workspaces. This demand is pushing city centre rents higher, with prime rents reaching £46 per sq ft and new schemes quoting around £50 per sq ft. The steady performance despite constrained supply highlights the resilience of the market and the potential for further growth. Businesses and investors stand to benefit from this upward trend, while limited Grade A supply may continue to drive rent increases.
What's Next?
The Leeds office market is expected to see several key pre-lets over the next six months as occupiers secure space for lease events in 2027-2029. The demand for sustainable and amenity-rich workspaces is likely to continue, potentially leading to further rent increases. As supply diminishes, stakeholders may need to focus on developing new office spaces to meet the growing demand. The ongoing activity in the market suggests a positive outlook for the local economy and real estate sector.
