Take-up

Take-up in Leeds during the first quarter of 2025 totalled 241,282 sq ft and was achieved through 25 transactions. Although take-up was down marginally by 4% on the same period in 2024, it was 53% higher than Q4 2024, and also 26% and 45% higher than the five- and ten-year Q1 averages.

Grade A and Prime take-up during Q1 2025 totalled 120,414 sq ft across 15 deals, accounting for half of the total take-up, 4% higher than the long-term average.

Supply

Availability at the end of Q1 2025 stands at 1 million sq ft, a decrease of 5% on the previous quarter. The total vacancy rate is now 8.5%, a decrease of 50 basis points, further highlighting the constrained supply in Leeds. Secondary stock accounts for half of the total.

Grade A and Prime availability stand at 361,000 sq ft and 176,289 sq ft, respectively. Grade A availability is on par with the previous quarter, while Prime has seen a decrease of 27%. The vacancy rates for both grades stand at 2.9% and 1.4%, respectively.

Take-up by business sector

The most active sector in Q1 2025 was the 'Public Services, Education & Health' sector, which leased a total of 146,562 sq ft and accounted for 61% of the total take-up. This was achieved through six transactions, with the largest of the sector and the quarter seeing Network Rail acquire 2 Princes Square, for a total of 108,576 sq ft. This was the sector's highest Q1 take-up on record.

Another active sector during the quarter was the 'Insurance & Financial' sector, which accounted for 20% of the total. The sector leased a combined 47,181 sq ft across three transactions, with Interactive Investor acquiring the largest of the sector for a total of 23,270 sq ft at 3 South Brook Street.

Rents

There was no new headline rent achieved in Q1 2025, and remained at £39 per sq ft, which was set at City Square House in Q3 2024; however, Savills is aware of multiple transactions under offer at £40 per sq ft and above. This is 3% higher than the same period in 2024, with Savills expecting headline rent to grow further to reach £46 per sq ft by the end of 2025, representing an increase of 18% on current rental levels. Savills revised rental forecasts are predicting headline rent will grow by 31% over the next five-year period and reach a market high of £51 per sq ft by 2029.

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