Executive Summary
Urban Splash's £50+ million transformation of Sheffield's beloved Cole Brothers building represents more than architectural preservation. It signals a pivotal moment for local business growth, promising to create hundreds of jobs whilst catalysing further investment across Sheffield's city centre.
The Grade II-listed former department store, empty since John Lewis closed in 2021, will become a vibrant mixed-use destination by 2026. This regeneration project positions Sheffield as a serious contender in the Northern Powerhouse economy.
Sheffield's Business Renaissance: The Numbers Tell the Story
Sheffield's city centre transformation is delivering measurable results. The recently completed £470 million Heart of the City project has already generated 7,000 direct and indirect jobs by 2024, exceeding initial projections.
This success creates a compelling foundation for the Cole Brothers development. Early indicators suggest strong market confidence, with Urban Splash appointing three specialist property agents to secure tenants before construction completion.
Key Economic Indicators:
- £470m invested in Heart of the City regeneration (completed 2024)
- 7,000 new jobs created across the city centre
- 95% occupancy rates in new commercial developments
- £21 million additional investment approved for city centre connectivity projects
The Cole Brothers Vision: Mixed-Use Success Formula
Ground Floor Commercial Revolution
Urban Splash plans to transform Cole Brothers' ground floor into a bustling retail and hospitality hub. This mirrors successful Heart of the City developments, where venues like Cambridge Street Collective food hall and BOX sports bar have become instant success stories.
The ground floor will feature:
- Independent retail outlets
- Artisan cafes and restaurants
- Flexible event spaces
- Cultural venues
Upper Floor Workspace Opportunity
Sheffield's growing business sector demands quality office space. Cole Brothers' upper floors will provide 50,000+ square feet of flexible workspace, targeting the city's expanding professional services sector.
Recent successes include global firm Turner & Townsend relocating to the Heart of the City's Elshaw House, citing Sheffield's "vibrant and transformed city centre" as a key factor.
Local Business Growth Drivers
Footfall Multiplication Effect
Cole Brothers sits at the strategic intersection of Barker's Pool and Cambridge Street. This prime location benefits from natural footfall between Sheffield's key shopping areas: Fargate, The Moor, and the Heart of the City development.
Conservative estimates suggest the regenerated building could attract 2 million+ annual visitors, creating substantial opportunities for surrounding businesses.
Employment Catalyst
The development will directly create approximately 500 permanent jobs across retail, hospitality, and office sectors. However, the multiplier effect suggests each direct job creates 1.4 indirect opportunities in the local economy.
Employment Impact Breakdown:
- 200+ retail and hospitality positions
- 300+ office-based professionals
- 100+ construction jobs during the development phase
- 700+ indirect service sector opportunities
Supply Chain Opportunities
Urban Splash prioritises local suppliers wherever possible. Sheffield businesses can expect opportunities across:
- Building maintenance and facilities management
- Catering and hospitality supplies
- Professional services (legal, financial, marketing)
- Technology and telecommunications
- Cleaning and security services
Strategic Location Advantages
Transport Connectivity
Cole Brothers benefits from Sheffield's improving transport infrastructure. The £21 million Connecting Sheffield: City Centre project will enhance bus reliability and create dedicated cycling routes, improving accessibility for both customers and employees.
Journey times to London will reduce to 87 minutes once rail upgrades are complete, positioning Sheffield as an attractive alternative to more expensive southern cities.
Proximity to Success Stories
The building sits within 200 metres of proven commercial successes:
- Cambridge Street Collective (16 food outlets, consistently busy)
- Radisson Blu hotel (supporting business traveller demand)
- DLA Piper offices (major law firm, 200+ employees)
- Henry Boot headquarters (relocated from suburbs to city centre)
Integration with Heart of the City
Cole Brothers will complement rather than compete with existing developments. Urban Splash specifically designed the project to "expand on the success" of surrounding regeneration, creating a unified business district.
Investment Climate and Future Prospects
Developer Confidence
Urban Splash's 30-year track record includes award-winning regeneration projects across Northern England. Their involvement signals a serious long-term commitment to Sheffield's growth.
The company's previous Sheffield success at Park Hill (800+ homes, multiple amenities) demonstrates its ability to deliver complex heritage projects profitably.
Market Demand Indicators
Sheffield's commercial property market shows strong fundamentals:
- Office vacancy rates below 8% in prime city centre locations
- Retail rents stabilising after pandemic disruption
- Hospitality sector recovering strongly (BOX sports bar reported record opening month)
- Residential demand is driving mixed-use development viability
Government Support
Sheffield benefits from multiple funding streams:
- £37 million Levelling Up Fund allocation
- £15.8 million Fargate regeneration grant
- Local authority backing for city centre transformation
- European Regional Development Fund contributions
Sector-Specific Opportunities
Independent Retail Renaissance
Sheffield's regeneration favours independent retailers over chain stores. Recent successes include:
- The Cream Store (fashion, Charles Street)
- Bird & Blend (speciality tea, Pinstone Street)
- Yards Store (independent fashion, Heart of the City)
Cole Brothers' flexible ground floor spaces suit independent operators seeking affordable city centre locations.
Professional Services Growth
Sheffield's business services sector is expanding rapidly. Major firms relocating to the city centre include Turner & Townsend, DLA Piper, and Barclays (downsizing but staying central).
The Cole Brothers' office space targets:
- Tech startups and scale-ups
- Creative industries (Sheffield has a strong digital sector)
- Professional consultancies
- Regional headquarters operations
Hospitality and Experience Economy
Post-pandemic consumers prioritise experiences over possessions. Cole Brothers' cultural and event spaces align with this trend.
Sheffield's hospitality sector is thriving:
- Cambridge Street Collective regularly hosts queues
- BOX sports bar exceeded first-month projections by 40%
- Bethel Chapel events venue booking is rapidly
- Growing food and drink tourism from Manchester and Leeds
Risk Mitigation and Success Factors
Heritage Preservation Advantages
Grade II listing provides protection against future demolition whilst qualifying for heritage grants and tax incentives. This reduces long-term investment risk for tenants.
Phased Development Approach
Urban Splash typically develops buildings in phases, allowing market testing and refinement. This reduces overall project risk whilst maintaining flexibility.
Local Community Support
Public consultation in October 2024 showed strong community backing for the proposals. Local support reduces planning risks and creates positive PR for incoming businesses.
Timeline and Next Steps
Development Schedule
- Early 2025: Planning permission finalised
- Spring 2025: Construction begins
- Late 2025: Tenant fit-outs commence
- Summer 2026: Phased opening begins
- Autumn 2026: Full operation expected
Business Engagement Opportunities
Local businesses should engage now to maximise opportunities:
Immediate Actions:
- Contact appointed agents (Smith Young, Starka, Colloco)
- Register interest for retail/office space
- Explore supply chain partnerships
- Consider collaborative marketing initiatives
Medium-term Planning:
- Assess staffing implications of increased footfall.
- Plan service expansions to serve a new customer base
- Consider complementary business offerings
- Develop partnerships with incoming tenants
Conclusion: Sheffield's Business Growth Accelerator
The Cole Brothers' regeneration represents more than building restoration. It's the final piece in Sheffield's city centre renaissance, creating a connected ecosystem of business, retail, hospitality, and cultural activity.
For local businesses, the development offers multiple growth pathways: direct tenancy opportunities, increased customer footfall, supply chain contracts, and employment prospects. The surrounding success of the Heart of the City project provides compelling evidence that Sheffield's regeneration delivers genuine economic impact.
The opportunity window is narrow. Early engagement with the development process allows businesses to secure optimal positions before competition intensifies. Sheffield's transformation from industrial past to service-oriented future is happening now – Cole Brothers is the catalyst that completes this evolution.
Tags:
Sheffield
22/09/25 18:29