Sheffield Heart of City applauded as major success – “what you’ve created is stunning”
Sheffield’s Heart of the City 2 city centre regeneration has been hailed as a big success, with near-total occupancy of office space, and compared to big developments in London.
The £430m scheme is now complete and has delivered several big projects.
A report discussed at Sheffield City Council’s finance and performance committee yesterday (February 25) outlined the key features of Heart of the City 2:
- 500,000 sq ft of new and repurposed Category A office space, home to international businesses DLA Piper, HSBC and CMS.
- Flexible workspace for small and medium businesses and start-ups in Leah’s Yard on Cambridge Street and Cubo on Carver Street, generating new jobs and industry.
- 100,000 sq ft of “revitalised retail attracting national brands and the best of the independents”.
- Europe’s largest purpose-built food hall, Cambridge Street Collective.
- Sheffield’s “number one hotel”, the Radisson Blu on Pinstone Street.
Mark Williams is co-founder of Rivington Hark, who were appointed as asset managers for the project on behalf of the council in March 2025 after construction work by developers Queensberry Real Estate was completed.
Stunning
He told councillors: “I hadn’t been to Sheffield for a while and I was blown away. What you’ve created is stunning, it is transformational on a scale I’ve not seen before by the public sector.”
Mr Williams compared the project to the redevelopment around Kings Cross station in London, the Broadgate office and retail project in the City of London and Liverpool ONE shopping centre, which he said he funded.
The latest big firm to sign up is Iaw company Irwin Mitchell, whose move into Elshaw House, Carver Street was announced yesterday. Mr Williams said 98% of office space is let, which effectively means that Heart of the City 2 has run out of grade A offices.
Mr Williams said that there are two development sites available next to Pound’s Park, off Carver Street. The process of getting them going is under way.
He explained that the fashion chains Weekday and Monki moved out of Pinstone Street last year because of restructuring by their owners, nothing to do with Sheffield.
Incredible
Both units are under offer from two good fashion chains, he said. One of the owners came up to Sheffield, liked what he saw and made an offer there and then.
“Fundamentally, from an outsider’s perspective, it is incredible and when they come here, they get that,” Mr Williams said.
Overall, retail is currently at 50% occupancy – 65% of vacancies are under offer, Mr Williams said.
“The Radisson as a hotel is absolutely smashing it,” he said. “They have the highest room rates in the city.
“When you put on events such as ice skating in the city you can see the benefits in room rates and food and beverage spend.
“Other hotels have increased their room rates.”
Championships
Sheffield hosted the ISU Figure Skating European Championships 2026 at the Utilita Arena in January. The council organised a fan zone in the Peace Gardens complete with an ice rink.
In response to a question by Coun Elle Dodd, Mr Williams said the next task is to attract attention to the project, so the private sector knows what is on offer and what the investment opportunities are.
Council director of regeneration and development Sean McClean said that 2025 has been the most successful year to date. Overall occupancy stands at 86% and there have been 11 new lettings.
Kerry Darlow, council assistant director for finance and business partnering, said that net operating income will increase to £9.7 million in 2026/27, rising to £11.9 million by 2029/30.