Take-up drops, but Prime space remains dominant

Take-up in Leeds during Q2 2026 totalled 179,898 sq ft and was achieved through 23 transactions, 10% above Q2 2025 and 3% above the five-year Q2 average number of transactions. Q2 take-up was 113% higher than Q2 2025, and 62% above the five-year Q2 average. This brought the half-year total to 214,234 sq ft, which was 34% below the same period in 2025 and also 33% down on the five-year H1 average.

H1 saw a number of larger transactions, with four over 10,000 sq ft. There were also eight transactions over 5,000 sq ft, with sub-5,000 sq ft accounting for 80% of take-up. However, with space under offer across the market, H2 is expected to see healthy occupier activity. We are aware of over 150,000 sq ft of significant instructions currently under offer, expected to complete before the end of the year.

Leeds is still seeing a flight to quality, with Grade A and Prime H1 take-up totalling 105,068 sq ft, accounting for 49% of the total. There were 24 combined transactions, on par with the five-year H1 average number.

Availability edges up slightly

Availability in Leeds at the end of Q2 2026 totals 975,000 sq ft, an increase of 6% compared to the previous quarter. This means that the vacancy rate has increased by 40 basis points (bps) to 7.9%. Secondary stock accounts for 50% of the total supply.

Grade A availability has increased by 57% to a total of 349,000 sq ft, meanwhile Prime has decreased by 1% to 142,393 sq ft.

This means that the Grade A vacancy is now 2.8%, and the Prime vacancy rate is 1.2%, with these combined totalling 4.0%, an increase of 55 bps.

With Prime availability remaining at record lows, the refurbishment pipeline is now coming forward, with delivery scheduled across 2027–2029 and c. 350,000 sq ft already committed, alongside further space under offer.

Public services occupiers lead take-up

‘Public services, education & health’ was the most active sector during H1 2026, accounting for 41% of the total by leasing 87,743 sq ft, which was the highest quarterly take-up for the sector since Q1 2025. There were four transactions in the first half of the year, with Luminate Education Group acquiring the largest of the sector and the half-year at Livingstone House, totalling 71,572 sq ft, which was the third transaction for the sector on record.

Another active sector during the first half of the year was ‘Manufacturing & Industry’, leasing a total of 41,703 sq ft, accounting for 19% of the take-up. There were three transactions in the sector, with Greencore acquiring the largest at Broad Gate for a total of 39,468 sq ft.

Headline rent has increased to £52.50 per sq ft

There has been an increase in headline rent in H1 2026, which established a new rental tone for new product at £52.50 per sq ft, representing a 14% increase compared with the previous headline of £46 per sq ft. This was set in the letting to DAC Beachcroft, which committed to 14,300 sq ft at 31 Wellington Street. Savills is aware of further space under offer at £50.00 per sq ft and above, with £55.00 per sq ft quoted on new build pipeline and pre-let opportunities.

There were several lettings in H1 2026 of £40 per sq ft and above, and we are now regularly seeing £40 per sq ft quoted and achieved on refurbished product, a level that 12 months ago would have been considered Prime headline figures. Savills revised rental forecasts predict that headline rent will grow by 14% over the next five years, reaching a market high in excess of £60 per sq ft by 2030, or sooner if a significant pre-let is secured.

Find out more about Leeds' property market here.

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