Strong first quarter office lettings market in Leeds as rents continue to rise
The Leeds Office Agents Forum (LOAF) has released its quarter one 2025 take-up figures, showing a strong start to the year for the city’s office market.
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, which Network Rail purchased, in part for its own occupation. Princes Exchange is in a prominent position next to Leeds Railway Station.
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.”
Leeds’ out-of-town market also performed strongly, with 94,861 sq ft of take-up recorded across 26 deals – representing a 140% increase on Q1 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.”
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.
