Leeds Commercial Property Market Guide: Office, Industrial, Retail and Development (2026)

Leeds is England's second-largest financial centre outside London, home to more than 30 banks and one of the fastest-growing digital and technology clusters in the UK. Its commercial property market has consistently outperformed expectations — recording the highest prime office rental growth rate of any Big Six city in 2025, strong industrial take-up returning to pre-pandemic norms, and a retail core that continues to attract major brands.

The city is simultaneously the focus of two transformative infrastructure programmes — the Northern Powerhouse Rail (NPR) network announced in January 2026, and the Leeds Integrated Station masterplan — that will redefine its connectivity and its commercial geography for decades to come.

This guide draws on data from Savills, JLL, Knight Frank, LSH, Avison Young, and the West Yorkshire Combined Authority to provide a current and detailed overview of each commercial property sector.

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The Office Market

Current market conditions

Leeds office market performance in 2025 was characterised by two themes: consistent demand at or above the long-run average, and a rapidly tightening supply of best-in-class space driving exceptional rental growth.

City centre take-up in 2025 was broadly in line with both the five- and ten-year annual averages, achieved through sustained transactional activity across a wide range of occupier sectors. Q1–Q3 2025 take-up totalled 482,286 sq ft through 78 transactions — 12% above the five-year average, according to Savills. H1 2025 take-up of 325,611 sq ft was marginally ahead of the equivalent 2024 period.

The structural story is one of tightening prime supply. Grade A vacancy at Q3 2025 stood at just 2.0%, while prime vacancy was an even tighter 1.6%, according to Savills. With only 43,000 sq ft under speculative construction at mid-2025, the pre-letting route is increasingly the only path for occupiers seeking larger floorplates.

Rents

Leeds recorded the Big Nine's greatest quarterly prime rental increase in Q3 2025, with prime rents rising 18% year-on-year to £46 per sq ft, having moved from £39 per sq ft in Q3 2024 to £40 per sq ft at the end of Q2 2025, and then to £46 per sq ft by Q3 2025, according to both Savills and JLL. This represents the sharpest single-year increase in the city's recorded history.

Looking ahead, Savills forecasts prime headline rent will grow by a further 31% over the next five-year period, reaching a market high of approximately £51–56 per sq ft by 2029, with further upside possible if new-build pre-lets complete at higher tones. The Big Six average is expected to see 26% rental premium growth over five years from current levels.

Key occupiers and notable deals

Several transactions stand out from the 2024 and 2025 period as defining deals for the Leeds market:

• Network Rail — acquired Princes Exchange at 2 Princes Square for 108,576 sq ft in Q1 2025, the largest single transaction of the quarter and one of the largest in the city for several years. Princes Exchange sits in a prominent position adjacent to Leeds railway station
• Eversheds — committed to 47,016 sq ft at Kellstone, Aire Park in Q3 2025, one of the defining lettings for the emerging South Bank commercial district
• Interactive Investor — 23,270 sq ft at 3 South Brook Street, Aire Park
• TPT Retirement Solutions — 23,261 sq ft at Aire Park, further validating the South Bank as an established office location
• Sweco — 14,966 sq ft at No. 1 Whitehall Riverside in Q3 2025

The professional sector was the most active in Q1–Q3 2025, leasing 125,909 sq ft through 13 transactions. Public services, education, and health was also significant, with 164,911 sq ft leased through 12 transactions — led by Network Rail's acquisition.

What occupiers look for

Leeds office occupiers consistently prioritise proximity to Leeds railway station and the emerging South Bank district; sustainability credentials, with BREEAM Excellent and EPC A or B now standard expectations for Grade A lettings; high-quality amenity provision including end-of-trip facilities, roof terraces, and ground-floor food and beverage; and fitted or plug-and-play space, with Savills noting a marked increase in fitted deals — 11 of the 33 deals in Q3 2025 alone were for fitted space.

The city's position as the leading financial centre outside London means covenant strength from professional services, financial services, and legal occupiers drives significant portions of demand. Leeds is also home to over 3,000 tech firms contributing more than £1 billion annually to the local economy, with a 25% increase in tech employment over the past five years, generating an emerging tech occupier profile alongside the traditional financial services base.

The two-tier market

Leeds's office market, like all major UK regional cities, has bifurcated. Prime and Grade A space in buildings such as Aire Park, Wellington Place, No. 1 Whitehall Riverside, and City Square House is commanding record rents and low vacancy. Secondary and older stock is being repurposed: changes to planning use classes have facilitated conversions to residential, student accommodation, and mixed uses, which is providing an active market for older floorplates that can no longer compete on occupational grounds.

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The Industrial and Logistics Market

Current conditions

Yorkshire and the Humber's industrial and logistics market returned to its pre-pandemic norm of approximately 2 million sq ft of annual take-up (units of 50,000 sq ft+) in 2024, according to Knight Frank. Take-up in West Yorkshire and the Humber reached a three-year high of 1.9 million sq ft by Q3 2024, driven by manufacturers (44% of take-up, up from 25% in 2023) and distribution firms (34%).

The most active size band was 50,000–100,000 sq ft, with 10 of the 18 units transacted in that size range during 2024. Demand has remained concentrated in modern or well-specified second-hand space, with older stock — particularly pre-2000 units — struggling to attract occupiers at viable rents.

A further 932,000 sq ft was under offer at year-end 2024 according to Knight Frank, pointing to a strong start to 2025. Investment in the sector nearly tripled year-on-year in H1 2025, according to Bradley Hall, reflecting investor confidence in West Yorkshire's industrial fundamentals.

Rents

Prime industrial rents across Yorkshire and the Humber are forecast to grow by 4.1% in 2025 and 3.6% across the wider region for the year, according to Knight Frank. The national average prime mid-box headline rent reached approximately £15.55 per sq ft by mid-2025. In West Yorkshire, typical prime rents range from £9–£14 per sq ft depending on specification, size, and motorway proximity, with the gap between prime and secondary rents continuing to widen.

Key locations

M62 and M1 corridors are the primary logistics locations in West Yorkshire, providing direct access to the Trans-Pennine route and the national motorway network. Leeds Valley Park on the M1/M621 junction has emerged as one of the most active new development locations, with units targeting BREEAM Very Good and EPC A. Baytree Leeds delivered two new speculative units (76,000 sq ft and 145,000 sq ft) just before year-end 2024, the only two new speculative units being delivered in West Yorkshire at the time. Gildersome Spur on the M62 remains a key established multi-let location serving the wider Leeds market.

Leeds Bradford Airport's industrial estate (LS19) provides logistics and airport-adjacent industrial space for businesses requiring air freight access.

Supply tightness

Supply tightness in prime West Yorkshire industrial space is acute. At the point of Baytree Leeds's completion, only eight new units were available across the entire West Yorkshire market, all under 200,000 sq ft. Based on the five-year average annual take-up, just 15 months' worth of existing supply was available at the end of 2024 — reducing to seven months for new or Grade A space, according to Knight Frank.

This supply constraint, combined with cautious speculative development appetite, means prime rents are expected to continue rising, while secondary stock that fails to meet modern occupier expectations will face prolonged void periods.

What occupiers look for

Industrial occupiers in West Yorkshire prioritise M62 or M1 motorway proximity, modern specification (eaves height, dock-level loading, secure yard depth), three-phase power, EPC A or B rating, EV charging, and BREEAM Very Good or Excellent. Manufacturers have shown increased appetite relative to logistics occupiers in 2024, a shift from the e-commerce and 3PL demand that dominated the post-pandemic years.

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The Retail Market

Current conditions

Leeds is the fourth-ranked retail centre in the UK by size, with over 3.5 million sq ft of retail and leisure space. The city's prime retail core — anchored by Trinity Leeds (opened 2013) and Victoria Gate (opened 2016) — continues to perform strongly, supported by high footfall from the city's large professional workforce, student population, and regional catchment.

Retail parks remain the strongest performers nationally, with vacancy rates declining to 6% in Q2 2025. In Leeds, high-profile destinations including Crown Point, Junction 1, and Trinity Leeds are all performing well.

Trinity Leeds reported a 15.7% year-on-year sales increase between April and June 2025, supported by a 4.7% rise in footfall, according to Bradley Hall. This performance reflects both the quality of the scheme and the benefit of improved transport links around the city centre.

Victoria Gate, the premium fashion and lifestyle destination adjacent to the Victoria Quarter and anchored by John Lewis, has maintained low vacancy and a curated tenant mix. Leisure has been a notable addition, with new venues including Azotea, The Crowded House, and Uyare at Victoria Gate adding to the city's cultural and evening economy offer.

The polarised market

The polarisation between prime and secondary retail in Leeds is sharper than the headline numbers suggest. Trinity, St John's, Victoria Gate, and Merrion Centre have each maintained vacancy rates in the 3–6% range. However, the wider city retail picture — particularly older retail frontage on Commercial Street, Albion Street, and secondary pitch locations — faces structural vacancy pressure. Savills has noted that total retail vacancy in Leeds has reached 17% of retail units (compared to 12% nationally), with nearly half of void space having been empty for over three years.

This polarisation creates both a challenge and an opportunity. The opportunity lies in the repurposing of redundant secondary retail space: conversions to office, hospitality, residential, student accommodation, and mixed-use have been active under the flexibilities introduced by Class E changes in 2020.

The STACK development at Kirkgate Market is one example of repurposing driving footfall and community benefit, creating a major new community hub and more than 160 jobs.

Retail strengths

Leeds's retail strengths are structural: a population of more than 800,000, a student population exceeding 65,000 across the University of Leeds, Leeds Beckett University, and Leeds Trinity, a large professional and financial services workforce, and an extensive regional catchment across West Yorkshire. These underpin demand for food and beverage, leisure, and experiential retail, all of which have grown as proportions of the city's retail mix.

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The Development Market

Aire Park

Aire Park is the defining commercial development of Leeds's current regeneration cycle — a 24-acre mixed-use scheme on the former Tetley Brewery site in the South Bank, developed by Vastint UK.

The project plans 1,350 homes, over 800,000 sq ft of Grade A office space, and more than 54,000 sq ft of retail and lifestyle amenities. Phase 1 has already delivered approximately 190,000 sq ft of Grade A office space across two buildings at 1 and 3 South Brook Street, both now substantially let. The 8-acre public park — the largest new city centre park in the country when complete — opened its largest segment to the public in July 2025, featuring pathways, planting, and connections to the River Aire.

Phase 2, approved in March 2025, adds 502 homes, 20,000 sq ft of leisure space, a 500-space multi-storey car park, and the remaining hectare of parkland. In December 2025, Leeds City Council approved the refurbishment and extension of the historic Tetley Brewery headquarters, adding 13,000 sq ft of office and event space while preserving its Art Deco façade. Overall completion is targeted by 2030.

Key office occupiers already committed at Aire Park include Eversheds (47,000 sq ft at Kellstone), Interactive Investor (23,270 sq ft), and TPT Retirement Solutions (23,261 sq ft).

Wellington Place

Wellington Place, developed by MEPC, is the established Grade A office campus north of the station that has attracted major financial and professional services occupiers. The scheme continues to deliver lettings and is regularly cited among the highest-quality office environments available in the city. Wellington Place is referenced in LSH's Regional Offices Report 2025 as one of the key assets expected to drive significant investment transactions in 2026.

South Village (City One)

South Village is the ten-acre site on Leeds's South Bank incorporating a masterplan by SimpsonHaugh Architects, targeting over 750,000 sq ft of commercial space for sustainable businesses, up to 450 hotel beds, and new pedestrian connections and green corridors. Infrastructure works are expected to start on site before the end of 2024, with the first plots emerging in 2025.

Leeds Integrated Station masterplan

The Leeds Integrated Station project is the largest single piece of infrastructure regeneration under way in the city. The masterplan involves a comprehensive structural and functional overhaul of Leeds station, expanding platforms to accommodate longer train sets and constructing a new 7,000 sq m concourse on an "open station" concept. The design creates new entrances from the city centre, the South Bank, and the River Aire waterfront.

Surrounding the station itself, the masterplan targets 300,000 sq m of commercial, residential, and leisure space — a development of comparable ambition to Mayfield in Manchester. Completion of the masterplan is projected around 2033.

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Infrastructure Shaping the Market

Northern Powerhouse Rail

The most significant long-term infrastructure announcement affecting Leeds's commercial property market came on 14 January 2026, when the government unveiled its outline plan for Northern Powerhouse Rail under the Northern Growth Strategy. The £45 billion programme commits to improving rail connectivity across the North, with an initial £1.1 billion allocated for design and early development work.

Phase 1 prioritises Yorkshire, with upgrades and electrification between Leeds and Sheffield, Leeds and York, and Leeds and Bradford — with the first improvements targeted for the 2030s. A new Bradford city centre station is being progressed, with a decision expected by Summer 2026. Phase 2 extends improvements through Greater Manchester and into Liverpool.

NPR represents the single largest transport investment in the North since the Victorian era. For Leeds, it addresses directly the city's chronic east-west connectivity weakness and the inadequacy of existing cross-Pennine rail capacity. The Government's own analysis suggests growing the productivity of the North's five largest cities to the national average would add up to £40 billion per year to the UK economy.

For commercial property, the practical effects will be felt over a long delivery horizon, but the announcement itself — and the clarity of commitment — signals improved investor and occupier confidence in regional locations served by NPR, particularly Leeds, Sheffield, Bradford, and York.

Transpennine Route Upgrade

Alongside NPR, the £11 billion Transpennine Route Upgrade between York and Manchester via Leeds and Huddersfield is already delivering more efficient journeys and additional capacity. Electrification, quad-tracking, and station rebuilds are under way. This upgrade improves Leeds's connectivity to Manchester significantly and is delivering incremental benefits to cross-Pennine commuters and businesses throughout the delivery period.

West Yorkshire Mass Transit

West Yorkshire Combined Authority's mass transit proposals — a new tram or light rail network linking Leeds city centre with surrounding towns — are in development, with a Leeds line planned. The South Village development has been designed with a travel hub to maximise connectivity with this proposed network. The mass transit proposals, if delivered, would replicate for West Yorkshire the transformative effect that the Metrolink has had on the Greater Manchester commercial geography.

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Challenges Facing Leeds's Commercial Property Market

Acute Grade A supply shortage. With prime vacancy at 1.6% and Grade A at 2.0%, and only 43,000 sq ft under speculative construction at mid-2025, the pipeline is critically thin. Pre-letting is increasingly the only route for large occupiers, and the development viability challenges — high build costs, elevated finance costs, uncertain investor sentiment — mean new speculative buildings have not been brought forward at the rate the market requires.

Development viability. The gap between achievable rents and development costs has made speculative development difficult to justify without pre-lets or public sector support. As rents approach and exceed £46 per sq ft, viability is improving, but the lag between rent growth and development commencement means the supply crunch will persist into 2027 and beyond.

NPR timeline uncertainty. Whilst the January 2026 announcement provides political commitment, delivery of Northern Powerhouse Rail infrastructure is targeted for the 2030s at the earliest. Businesses making long-term location decisions must factor in the gap between the promise of improved connectivity and its actual delivery.

Secondary retail structural decline. The 17% vacancy rate across Leeds's total retail stock — against a national average of 12% — reflects the structural challenge of secondary retail in a city that built significant retail provision during the 2010s boom. Repurposing redundant retail space at scale requires coordinated investment that has not yet arrived in sufficient quantum.

EPC compliance. A significant proportion of Leeds's older office and industrial stock faces the rising MEES thresholds. Landlords of poorly rated assets face material capital expenditure to maintain lettability, while the most challenged buildings are candidates for conversion or demolition rather than refurbishment.

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Frequently Asked Questions

What is the current prime office rent in Leeds?

The prime office rent in Leeds is £46 per sq ft, set in Q3 2025 and confirmed by both Savills and JLL. This represents 18% growth on the same period in 2024 — the highest single-year prime rental increase of any Big Six city market. Savills forecasts further growth to approximately £51–56 per sq ft by 2029, driven by the continuing shortage of Grade A supply.

What are the main office locations in Leeds city centre?

The principal office locations are the city centre core around the station (Wellington Place, No. 1 Whitehall Riverside, City Square House), the emerging South Bank (Aire Park, with 1 and 3 South Brook Street delivered and further buildings planned), and established mid-market locations including West Village and Thorpe Park to the east of the city. Prime vacancy is tightest in the city centre core and at Aire Park, where recent lettings to Eversheds, Network Rail, and Interactive Investor have established South Bank as a credible prime location.

What is Aire Park and why is it significant?

Aire Park is a 24-acre mixed-use regeneration scheme on the former Tetley Brewery site in the South Bank district, developed by Vastint UK. It represents the most significant new commercial district to emerge in Leeds for a generation. Phase 1 has already delivered approximately 190,000 sq ft of Grade A office space, and the 8-acre public park opened in July 2025. When complete, it will include over 800,000 sq ft of offices, 1,350 homes, and 54,000 sq ft of retail and leisure. Overall completion is targeted by 2030.

What is Northern Powerhouse Rail and how will it affect Leeds?

Northern Powerhouse Rail is a £45 billion government programme to transform rail connectivity across the North of England, announced in outline in January 2026. Phase 1 prioritises Yorkshire, with upgrades and electrification between Leeds and Sheffield, Leeds and York, and Leeds and Bradford — targeted for the 2030s. A new through station at Bradford is being progressed. For Leeds, NPR addresses the chronic east-west connectivity constraint and will materially expand the accessible workforce catchment for city centre employers when delivered. The Leeds station masterplan, targeting completion around 2033, will deliver a new concourse, expanded platforms, and 300,000 sq m of surrounding commercial and residential development.

Where is industrial and logistics space concentrated in West Yorkshire?

The primary industrial locations in West Yorkshire are the M62 corridor (including Gildersome Spur and Morley for established multi-let stock), the M1/M621 junction (including Leeds Valley Park for new-build logistics), Normanton and Wakefield for larger-format distribution, and Leeds Bradford Airport's industrial estate for businesses requiring air freight proximity. Baytree Leeds on the M62 at Morley delivered the market's most significant recent speculative scheme.

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Leeds's commercial property market is operating at a point of structural transition — record rents driven by acute supply constraints, a development pipeline that is beginning to respond but lags significantly behind demand, and the most ambitious infrastructure investment programme in a generation now confirmed for delivery. For businesses seeking Grade A space in the city, the direction of travel is unambiguous: act early, engage the pre-letting market, and secure space before the pipeline tightens further.

If you are looking for commercial space in Leeds or the wider West Yorkshire region, post your requirement on REmatch — describe what you need, and landlords and agents with matching property will respond directly to your brief.