A connected, affordable and vibrant city where academia, industry and culture unite to power innovation-led growth
Innovation and Investment Driving Growth
Leeds is rapidly emerging as one of the UK’s most exciting cities for business, innovation and talent. Its economy is built on strong foundations in financial services, technology and health, offering a unique combination of connectivity, affordability, and quality of life that appeals to both businesses and graduates.
Academic Strength and Research Ecosystem
The city’s academic institutions underpin this success. The University of Leeds, with 39,000 students and an annual economic contribution of £1.3 billion, ranks among the UK’s top ten universities for spin-outs, having created more than 40 since 2021, including leaders in health innovation. Leeds Beckett University adds further depth with its £80 million investment in a new art school, which opened in 2023, reinforcing the city’s creative and research credentials. Together, these institutions create a vibrant ecosystem for enterprise and collaboration, supported by affordable living, strong transport links to Manchester and London, and cultural assets that enhance the city’s appeal.
Transformational Developments
Two flagship schemes are reshaping Leeds' commercial landscape. Wellington Place has delivered over 1 million sq ft of Grade A workspace, attracting major occupiers such as HMRC, NHS Digital, Sky Betting & Gaming, Lloyds, Arup, Mazars, GHD and Equifax, amongst many others. The scheme has generated more than £200 million in GVA, created thousands of jobs, and set new benchmarks for sustainability and wellbeing. Aire Park, part of the South Bank regeneration, is doubling the size of Leeds city centre with 800,000 sq ft of offices, 1,400 homes, and the largest city-centre park in the UK.
Aire Park, Leeds
These projects are magnets for businesses seeking ESG-compliant, amenity-rich environments and have catalysed rental growth, with headline rents rising from £40 per sq ft in mid-2025 to £46 per sq ft at year-end—a huge 21% growth on top rents in the 18–24 months. Leeds is forecast to see another 9% growth on rents in the next three years, with headline rents expected to exceed £50 per sq ft by 2027, with the city expected to have an average rental uplift of 13% on a pre-let new build.
Innovation Arc: The Game-Changer
At the heart of Leeds' growth strategy is the Innovation Arc—a 150-hectare zone linking universities, hospitals, research facilities, and private partners such as Nexus. This ambitious development is expected to deliver a £13 billion economic boost, create 4,000 new jobs, and facilitate 20,000 new homes alongside four hectares of new parkland. Anchored by transport-led regeneration and backed by government and MIT-REAP, the Arc positions Leeds as a global hub for health-tech, data science, and green innovation. Key components include the Old Medical School, which Scarborough Group is redeveloping into a state-of-the-art hub for health and life sciences, and the Innovation Pop-Up launched by Leeds Teaching Hospitals—a dedicated space for start-ups and innovators to test ideas, collaborate with clinicians, and accelerate health-tech solutions. These initiatives ensure the Arc is not just a physical development but a dynamic ecosystem where academia, industry, and entrepreneurs converge to drive inclusive growth.
Delivering Innovation-Led Growth
To realise its full potential, Leeds must deliver flexible, ESG-compliant offices and labs to support high-growth sectors, create vibrant mixed-use districts with green space and cultural amenities, and provide diverse, affordable housing options to retain skilled workers.
Investment in connectivity is essential, with a £2.5 billion mass transit system and digital infrastructure linking the Innovation Arc, city centre, and outlying hubs. Strategic land use, including densification and green belt release, will unlock sites for employment and housing while balancing sustainability goals.
Prime Supply Context
Despite these strengths, Leeds currently has the lowest level of prime office supply among the UK’s Big Six regional cities. Savills is currently tracking c.500,000 sq ft of requirements, with occupiers with lease events in 2029 onwards coming into focus. If new stock isn’t delivered soon, Leeds risks losing potential tenants to competing cities, undermining its growth ambitions and weakening its position as a leading innovation hub. Developers and investors have a clear opportunity to respond with new, sustainable schemes that meet evolving occupier needs to soak up the increasing pent-up occupier demand.
With these foundations in place, Leeds is set to become a leading destination for innovation, investment and ideas, building a future economy that is sustainable, inclusive, and globally competitive.