Sheffield has seen encouraging signs of life in the office market, with a pick-up in transactional activity. During Q1-Q3 2013, total Sheffield office take-up reached 192,188 sq ft, up 19% on the equivalent period a year earlier, according to research by BNP Paribas Real Estate, the leading property adviser.
BNP Paribas Real Estate’s head of Sheffield agency, Guy Cooke, comments: “In Sheffield, we predict next year will be a turning point for the market. This year the market has shown tentative signs of recovery and with confidence returning we are seeing take-up on course to outperform 2012. However, with the absence of any new completions, we will see availability levels continuing to gradually fall.”
Jo Warren of BNP Paribas Real Estate’s research department, comments: “In Sheffield, total office investment between Q1-Q3 2013 reached 21.3m, which is on a par with 2012. These figures however, disguise the renewed positivity in the market, with CTP’s proposals to develop 76,000 sq ft at 3 St Paul’s Place – the last remaining phase and Sheffield’s first major office development in more than five years. On completion this will supply the market with much needed prime grade A office space.”
The absence of prime office space has meant smaller grade B and C deals are sustaining the market. This has resulted in the Sheffield office supply level falling 13% over the last year, with Q3 2013 availability now at 1.4m sq ft.
With the continuing under supply of truly prime space in the Sheffield central business district, unsurprisingly, top headline rents are unchanged at £19.50 – £20.00 per sq ft.
