Leeds City Region is undergoing a dramatic transformation, driven by economic growth, a strengthening financial sector, a large student population and increased inward investment. One third of the entire region’s economic output is now delivered by the city of Leeds, which is home to the UK’s largest financial services centre outside of London.

Another key factor has been the growth of the tech sector in Leeds, which has expanded by 2.8 per cent over the last five years. This equates to 3,200 tech-based jobs, and has added a further dimension to the already well-established financial, professional and healthcare sectors in the city. Looking ahead, we expect the tech sector to grow by a further 5.6 per cent over the next five years, which translates into an additional 6,400 jobs during that time.

So what makes the city so attractive to tech-related businesses? For a sector dependent on fast internet connections, the fact that Leeds, Bradford and York have all signed up to the select group of UK gigabit cities – where internet download speeds reach over one gigabit per second – is hugely attractive. To date, not even London can offer such rapid download speeds.

With many tech start-ups working to tight budgets, affordability of office accommodation is also key. Staffing and property costs in Leeds remain very competitive, with Grade A rents of circa £28 per sq ft still offering some of the lowest rents of big regional cities. South of the River Aire, a new tech cluster is emerging following a rush of deals to take space in the Holbeck area in particular. There are now two new developments in planning – Holbeck Tower and Tower Works – which could provide an estimated 52,000 sq ft of mid-price office space, the likes of which has so far been favoured by the tech sector. 

Since 2010, tech occupiers have accounted for more than 1,000,000 sq ft of office take-up in Leeds and this has continued in 2016 with 100,000 sq ft of deals completed. Examples include SkyBet's acquisition of 40,000 sq ft at 6 Wellington Place, expanding from the 100,000 sq ft that Sky took at Leeds Dock in 2015.

With strong tech-related requirements in the market, some of the fastest internet speeds in the country and flexible, affordable office space available, the tech sector looks set to continue flourishing in Leeds.

Further information

Read more: Spotlight Leeds Cross Sector Report