Leeds office market is experiencing strong demand for high-quality, sustainable Grade A spaces, driven by occupiers’ focus on talent attraction, ESG goals, and innovation
The race for 'quality' space within Leeds
Occupiers' priorities have evolved significantly over the last few years, driven by the need to attract and retain talent and meet ESG targets.
Leeds has seen an increase in occupiers demanding higher-quality space, with Grade A and prime take-up accounting for 68% of the total take-up in the first three quarters of 2024. This highlights how integral high-quality, sustainable buildings will be to the Leeds office market going forward.
However, In Leeds, an imbalance between supply and demand for office space highlights the need for efficient asset management and cost-effective development. With only 0.8 years of prime office supply available, developers and investors must seize opportunities to enhance existing properties and bring new, financially viable projects to market.
Developments like Aire Park and Wellington Place are addressing this demand by offering high-quality, sustainable office spaces. Aire Park focuses on energy efficiency, cutting-edge design, and adaptable office configurations, catering to occupiers from tech startups to professional services. Similarly, Wellington Place has become a flagship business district in Leeds, known for its innovative workspace, strong ESG credentials, and vibrant community-driven ethos, appealing to a diverse range of occupiers.
Developments like Aire Park and Wellington Place are addressing the lack of demand within the city, while creating vibrant, work-live-play districts
Clare Bailey, Director, Commercial Research
Aire Park, developed by Vastint, is pivotal to the South Bank regeneration. The masterplan allows for 800,000 sq ft of Grade A office space, plus residential areas, hotel and public green areas with supplementary retail/ F&B offers, expanding the city centre and creating a new district.
Wellington Place, located to the west of the city centre, complements this by offering a hub for global businesses, with features like wellness initiatives, green spaces, and flexible office configurations.
Together, Aire Park and Wellington Place support Leeds's ambition to attract global businesses while creating vibrant, work-live-play districts.
These developments highlight the city's commitment to sustainable growth and its ability to meet the evolving needs of modern occupiers. At the same time, landlords across the city are refurbishing existing buildings to align with demand for top-tier office spaces, ensuring Leeds remains a competitive regional hub.
2 Wellington Place, c.120,000 sq ft of highly sustainable, Grade A office space available in summer 2026, will not only provide much-needed Grade A space but will set a new benchmark in the city for repositioning an existing asset and present occupiers with an opportunity to join the world-class tenant line up at Wellington Place.
The popularity of Bruntwood SciTech's forward-thinking innovation hub, West Village, is also evident, with the scheme already 75% pre-let. Following an ambitious £20 million redevelopment project, West Village offers 230,000 sq ft of state-of-the-art workspace designed to help innovation thrive and stimulate collaborations between like-minded businesses, attracting occupiers from across sectors and pushing rents to close-to-prime headline levels.
Which sectors are dominating the Leeds office market as we go into 2025?
The public services, education and health sector has been dominant in 2024, by leasing a total of 137,000 sq ft of office space (28% of total take-up), 62% above the five-year average take-up for the sector.
The education subsector has been active in all markets of the Big Six, with Leeds seeing 106,000 sq ft acquired by educational institutions year to date, with further space under offer to occupiers from this sector and significant requirements in the market.
Traditional sectors are continuing to drive take-up in Leeds, with both the professional and insurance & financial sectors leasing over 70,000 sq ft in the first three quarters of 2024, with the latter witnessing its highest take-up so far this year since 2019.
Looking forward to 2025, it is expected that these traditional sectors will continue their activity within the market. For example, currently, the professional sector has 17 active requirements for office space in Leeds, totalling 250,000 sq ft. The public sector also has a notable demand for offices, with 105,000 sq ft of requirements, demonstrating the dominance of traditional sectors.
However, newer subsectors within the technology sector are seeing a notable amount of requirements enter the market (c.120,000 sq ft), helping to create a new dynamic within the Leeds office market as we go into 2025.
Leeds-ing the way: a new era for tech innovation
Leeds has emerged as a dynamic hub for the UK tech sector, combining its rich industrial heritage with a forward-looking, innovation-driven economy.
Over the past decade, the city has experienced rapid growth in tech, driven by its thriving digital ecosystem and strong collaborative networks between businesses, universities, and public institutions.
Leeds is home to over 3,000 tech firms, contributing more than £1 billion annually to the local economy. It boasts one of the fastest-growing digital sectors in the UK, with a 25% increase in tech employment over the past five years. 15% of graduates retained in Leeds work in science and tech – 36% higher than the UK average.
Approximately 40,000 people work in digital and technology roles, and this figure is set to rise as demand for data analytics, software development, and cybersecurity expertise continues to expand.
The city’s commitment to fostering innovation is evident in initiatives such as the Leeds Digital Festival, the largest tech event in the UK, and the Nexus Innovation Hub at the University of Leeds, which supports startups and scaleups. Leeds has also become a leader in health tech, with its role as a central hub for NHS Digital and NHS England driving advancements in healthcare data and digital solutions.
With its lower operating costs, skilled workforce, and robust infrastructure, Leeds is solidifying its reputation as a leading tech destination in the UK.
The Innovation Arc in Leeds is playing a crucial role in boosting the city’s health tech sector, with several prominent companies and institutions driving its growth. Notably, Medovate, a health tech company that develops innovative medical devices, is one of the key players in the Leeds ecosystem, working to bring new technologies to market with a focus on improving patient care. Others include VQ Communications, which develops digital solutions to improve healthcare communication, and Convatec, a global medical technology company, are also significant contributors to the local health innovation scene.
Approximately 40,000 people work in digital and technology roles, with this figure set to rise
Clare Bailey, Director, Commercial Research
Central to this is the collaboration between Leeds Teaching Hospitals NHS Trust, the University of Leeds, and Leeds Beckett University, which are leading research in areas such as health data analytics, AI-driven healthcare solutions, and digital health technologies. Health and social work activities is the largest graduate employment sector, employing 20% of graduates in Leeds, emphasising the talent pool coming through in this sector.
The Leeds Institute of Medical Research (LIMR) and the Leeds Health Partnerships provide a strong foundation for innovation, connecting startups with world-class research and clinical expertise. The Innovation Pop-Up at the Leeds General Infirmary is also an area where companies can connect and work collaboratively with the Trust's clinicians and innovation team, to transform the latest advances in science, research, and technology into real-world solutions.
Through these collaborations, the Innovation Arc is helping to accelerate the development of transformative health technologies, positioning Leeds as a leading hub for health innovation in the UK.