The commercial property market in Yorkshire continues to evolve, shaped by a blend of economic pressures, regional regeneration, and shifting occupier demands. For businesses, investors, and developers, the landscape presents both challenges and opportunities.

At Adair Paxton, our commercial team, underpinned by our surveying heritage and local market insight, has observed notable trends across sectors and locations that are shaping decisions across the region.

Offices: Demand Driven by Flexibility and Location

While hybrid is here to stay, with 84% of Yorkshire businesses now adopting it, there’s a clear appetite for more in‑office time, with 93% of those hybrid adopters wanting greater office presence. At the same time, demand for well‑located, high‑quality office space in Leeds is surging.

Occupiers continue to prioritise space that supports collaboration, wellbeing, and sustainability. This means centrally located, refurbished buildings with strong transport links and energy efficiency credentials are seeing good levels of demand, even at premium rental levels.

Secondary office stock, however, is under pressure. Buildings without modern amenities or EPC upgrades are proving harder to let or sell, with investors increasingly cautious of retrofitting costs.

What this means: For landlords with older office buildings, strategic refurbishment or repositioning may be essential to maintain marketability.

Industrial: Yorkshire Remains a Northern Powerhouse

Industrial space continues to be the standout performer in the region. Strong demand from e-commerce, logistics, and local manufacturers has kept vacancy rates low across the Leeds-Bradford corridor and key areas such as South Kirkstall, Morley and East Leeds.

While industrial rental growth has eased since the 2022–2023 peak, the sector remains a core target for investors. Demand is particularly strong for multi‑let and small-unit premises. The UK’s small-unit multi-let industrial market has entered mid‑2025 on a solid footing, and investors continue to seek value in these flexible assets despite overall industrial investment dipping to £1.4 bn in Q1 2025, where the focus remained on multi-let estates offering short-term rental growth opportunities.

What this means: For investors and developers, small-to-mid-sized industrial units in well-connected locations remain a safe and lucrative bet.

Retail: A Tale of Two Markets

Retail continues to show polarisation. Leeds city centre has benefitted from continued footfall and a diverse mix of occupiers, from national brands in Trinity Leeds to independents in the Victoria Quarter. The best-performing assets are those that combine experience-led retail with food, leisure, or mixed-use developments.

However, smaller retail parades in suburban areas have faced challenges, particularly where parking is limited or tenant churn is high. Parades in weaker catchments or with high vacancy rates often struggle to maintain income, and research indicates that inadequate parking access can significantly impair retail performance. Despite this, there’s opportunity for repositioning these spaces to meet local needs, such as converting retail into alternative uses, including flexible workspace or community-led retail.

What this means: Asset management is key. Owners should consider tenant mix, alternative uses, and local demand drivers before making long-term decisions.

Investment: Yields Remain Robust, but Buyers Are Cautious

Across Yorkshire, appetite for commercial investment remains strong, particularly for industrial and mixed-use assets. The industrial and logistics sector, for example, saw 1.3 million sq ft transacted in Q1 2025, including 912,800 sq ft in West Yorkshire and the Humber alone. However, the market is now characterised by more selective investors and longer due diligence periods.

Rising finance costs and inflation have led to greater scrutiny of income security and future capital expenditure. Investors are favouring secure, long-term income and avoiding assets with uncertain ESG liabilities.

What this means: Vendors need to provide clear documentation and demonstrate income stability to attract serious investors. Accurate valuation, supported by surveying expertise, has never been more important.

Development Land: Long-Term Opportunity Remains

Land values have stabilised after several years of strong growth, but developers remain active, especially where planning potential is supported by infrastructure investment. In Leeds, sites near the city centre, along key transport corridors, or within enterprise zones continue to attract interest.

Mixed-use development is gaining traction, with schemes combining residential, workspace, and leisure seeing strong feasibility. Demand for high-quality workspace in suburban locations is also creating interest in former brownfield sites across West and North Leeds.

What this means: Developers should consider future-proofed schemes that incorporate flexible space, community uses, and sustainable credentials to appeal to both occupiers and planners.

Summary: A Market of Winners and Repositioning

While the Yorkshire commercial market is not immune to broader economic pressures, it continues to offer significant opportunities, especially for those with a clear strategy. Occupiers want more from their space, investors are targeting reliable returns, and developers are eyeing long-term potential.

At Adair Paxton, our 165-year history means we’ve seen the property cycle many times and understand how to act at each stage. From acquisition and valuation to lettings and asset management, our director-led team is helping clients make informed, confident decisions backed by local insight and surveying expertise.

If you’re considering a commercial move, sale, investment, or development in Yorkshire, our team is ready to support you with tailored, practical advice.

Speak to our commercial property team

For expert, local advice across offices, industrial, retail, investment, or development land, contact Adair Paxton today.

You can see all of the available commercial property listed by Adair Paxton on NovaLoca here.

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