Solid demand for Leeds office space continued in first quarter of 2025, according to new report

A total of 241,282 sq ft of city centre office space was transacted in the first three months of 2025 – on a par with the bumper 249,703 sq ft recorded during the same period in 2024.

Between January and March, 25 city centre office deals were completed according to LOAF’s data.

The largest transaction was the 108,576 sq ft sale of Princes Exchange, located adjacent to Leeds City Station. The site was purchased by Network Rail, in part for its own occupation.

Other significant city centre deals included two at 3 South Bank Street at Aire Park, where 23,270 sq ft was let to Interactive Investor and TPT Retirement Solutions signed up to 23,261 sq ft.

Jay Dhesi from Sanderson Weatherall said: “This first quarter included a number of notable lettings, including the two which concluded at Aire Park, as this new commercial district begins to firmly establish itself in the city centre.

“Prime Grade A office rents continued to edge upwards and given a shortage of supply in the short term, further evidence of lettings at rents in the early £40’s per sq ft is likely in the near future.”

The Aire Park scheme is a 24-acre acre mixed use development located at Leeds’ South Bank.

In October last year, the team behind the scheme announced the launch of the city’s newest commercial district, with the opening of buildings 1 and 3 South Brook Street.

The opening also marked the reintroduction of a historic street name to the city.

The original South Brook Street disappeared with the expansion of the Tetley Brewery – which was previously located on the Aire Park site.

The road name has now been reinstated as part of Aire Park’s new commercial district, which will eventually see the creation of almost 750,000 sq ft of new office space .

Leeds’ out-of-town market also performed strongly, according to the LOAF report, with 94,861 sq ft of take-up recorded across 26 deals - representing a 140 per cent increase on the first quarter of 2024.

Ellie McCollin from CBRE added: “The out-of-town market continues to build on last year’s strong momentum and a move towards premium office space is underlined by the largest letting in the suburbs this quarter - 2 Work’s commitment to 19,513 sq ft at White Rose Park.

“The second largest letting saw Trimble UK secure 13,617 sq ft at Trimble House on Gelderd Road.”

“Given the upward pressure on rentals in the city centre and reducing office supply, it is possible that further city centre occupiers might look to the best out-of-town locations to satisfy future requirements.”

Leeds-based workspace operator WorkWell also announced earlier this week that it had seen a surge in lettings at its East Leeds sites, Carrwood Park and Brookfield Court.

Earlier this month, WorkWell revealed plans to significantly expand its footprint across the north of England, with ambitions to open ten new office sites over the next decade.

The Leeds Office Agents Forum is made up of representatives from: Avison Young, BNP Paribas Real Estate, Carter Towler, Carter Jonas, CBRE, Colliers, Cushman & Wakefield, Fox Lloyd Jones, JLL, Knight Frank, Lambert Smith Hampton, Sanderson Weatherall, Savills and WSB.