Leeds office market slows in Q1 after steady 2025 – as Aire Park scoops two records
Take-up in the city has entered 2026 on a quieter footing after a broadly resilient performance last year, with early figures pointing to a sharp drop in space taken but also a notable shift in occupier behaviour.
According to the Leeds Office Agents Forum, city centre take-up totalled 34,336 sq ft in Q1, 2026 – an 86% fall on the same period in 2025.
Activity was concentrated in a smaller number of deals, with 19 transactions completed and demand increasingly focused on flexible, smaller floorplates rather than large-scale requirements.
The largest deal of the quarter saw Ridge & Partners take 6,953 sq ft at 1 South Brook Street, Aire Park.
A similar trend was evident in the out-of-town market, where take-up reached 49,245 sq ft, down 48% year-on-year. Again, 19 deals completed, with the largest being Labskin’s acquisition of 11,320 sq ft at Thorp Arch.
The subdued start to 2026 contrasts with a stable full-year performance in 2025. Research from JLL shows Leeds recorded total take-up of 633,000 sq ft last year – in line with the five-year average, albeit slightly below 2024’s peak.
That resilience was underpinned by strong demand from legal and professional services firms. The largest deal of 2025 was Eversheds Sutherland’s 47,016 sq ft letting at Aire Park, while activity such as the re-gear of Blacks Solicitors at 29 King Street highlighted a market shaped by refurbishment and lease events rather than new-build expansion.
Prime rents also strengthened in 2025, rising to £46 per sq ft by the end of the year, with projections pointing to further growth towards £60 per sq ft by 2030.
However, development activity remains constrained. Only one new-build scheme is currently on site, with a further three in the pipeline but yet to secure pre-lets, creating some uncertainty around delivery timelines.
Investment volumes were also muted in 2025, with £36m transacted across four deals – a 76% decline on 2024 – although this is widely seen as a cyclical slowdown rather than a structural shift.
Taken together, the data suggests that while Leeds entered 2026 with reduced momentum, the underlying dynamics of the market are evolving rather than weakening.
The move towards smaller, more flexible office requirements seen in Q1 reflects changing occupier priorities, even as core sectors continue to provide a stable base of demand.
Looking ahead, forecast employment growth of around 1.2% per annum to 2030, alongside expansion in the creative industries – expected to generate more than 12,000 jobs – is set to support medium-term take-up, indicating that the current slowdown may mark a transition point rather than a downturn.
Speaking about the city’s 2025 results, Sam Jamieson, JLL’s director for office agency in Leeds, said: “Leeds delivered a stable performance in 2025 and the pipeline for 2026 gives us confidence.
“The city has a strong base of professional services demand and we’re seeing growing interest from the creative and tech sectors.
“It’s not just Leeds. We’ve recently completed a landmark deal in Sheffield, which underlines that Yorkshire as a whole is attracting serious occupier interest.”
Connor Rogers, JLL’s associate, investment, sales, & acquisitions in Leeds, said: “Currently the investment market is suffering from a lack of stock – there is a considerable capital looking to enter key cities in the regional office market in order to capitalise on the significant rental growth we have seen in recent years, with Leeds in particular at the top of the shopping list for many.”
Speaking about the Q1, 2026 results, Clem McDowell, director at Carter Towler, said: “Q1 volumes reflect a shift in occupier demand towards smaller, more flexible space.
“In the city centre, 68% of all deals were for space below 1,500 sq ft, a notable increase from 32% in Q1 2025. Similarly, in the out-of-town market, 58% of transactions were below 1,500 sq ft, compared with 42% in the same period last year.”
Eamon Fox, partner at Knight Frank, added: “Looking ahead, we cannot underestimate the pulling power of Leeds. This quarter’s activity does not reflect the full picture, as we are already seeing larger inward movers to the city, with transactions due to be announced later in 2026 that will help restore activity to more traditional levels.
“There is no doubt that occupiers will continue to prioritise cost control across business expenditure while economic uncertainty persists. However, there remains a critical need for high‑quality office space.
“This demand is now being addressed by a number of developers and landlords who understand the city, delivering excellent‑quality office accommodation that aligns with employers’ desire to use the workplace as a destination to help recruit and retain the best talent.”
LOAF members include 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.
