Aykley Heads signals new era for North East innovation-led development
Following the North East Emerging Development Hotspots event last week, Raife Gale, senior development manager at Muse, outlined to Place North East why the region has cause to be optimistic and how the Durham development will be central to its future success.
The performance of the commercial property market in the North East shows there’s reason for cautious optimism. According to the latest RICS UK Commercial Property Monitor, tenant demand in the region’s office and industrial sectors saw an uptick in Q1 2025, with net balances of +6% and +9% respectively. Prime office and industrial rents are forecast to grow by over 2% this year, while the North East is also one of the few UK regions where meaningful rental growth in prime retail is still expected.
Gale spoke at the North East Emerging Development Hotspots event last week. Credit: PNE
Durham is playing a central role in this. Known for its historic architecture and academic excellence, the city is now positioning itself as a key player in the UK’s innovation economy. A major step in that direction is the development of the Aykley Heads site, which is set to become the first phase of the new Durham Innovation District.
Earlier this year, Muse signed a joint venture and development management agreement between ourselves and Durham County Council. This agreement sets the stage for the transformation of Aykley Heads into a hub for research, enterprise, and collaboration. The 37-acre site already has outline planning consent for around 400,000 sq ft of commercial space, and detailed proposals are now being developed.
The project is part of a broader 160-acre innovation district that aims to support economic growth and rebalance the city centre. It’s being delivered through a “triple helix” model, bringing together local government, academia, and the private sector. Durham University is a key partner, and the district is expected to attract businesses in sectors such as data science, fintech, green technology, and healthcare.
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The development of Aykley Heads has also been identified as a key strategic priority in the North East Combined Authority’s devolution deal, which reflects its regional importance and the widespread recognition of the role it has to play in enabling growth in the North East.
The long-term goal is to create a nationally significant innovation district that supports job creation, attracts investment, and contributes to the region’s economic resilience. While the project is still in its early stages, the partnership between Muse, Durham County Council, and other stakeholders reflects a shared commitment to shaping a more dynamic and inclusive future for the city.
It also forms part of a broader regional strategy to strengthen the North East’s innovation ecosystem and enhance its competitiveness in the UK’s knowledge economy. With a clear delivery framework now in place, Aykley Heads is positioned to become a key player in the region’s future economic landscape.
Place North East’s next event in Newcastle will be the North East Development Update, held at St James’ Park, in November.
