Commercial property agents, Knight Frank, report that Sheffield’s Technology, Media and Telecommunications (TMT) sector is the key driver for the city’s office market in Q2 2019.
The 20,000 sq ft freehold sale of Hallamshire Business Park to online educational publisher Twinkl was the largest occupier deal in Q2.
Consequently, the TMT sector saw another strong quarter in the city, accounting for 45% of office take-up.
Ben White, associate at the Sheffield office of Knight Frank, said: “Following a strong first quarter, letting activity slowed in Q2 2019 reaching 65,545 sq ft, reflecting a more accurate representation of the market.
“As a result, the total for H1 2019 increased to 266,196 sq ft, 34 per cent more when compared to the same period last year.”
“Despite 27,000 sq ft of speculative space being delivered in Q2, Grade A availability remained limited with 85,000 sq ft being marketed in Q2, 71 per cent below the 10 year quarterly average.
“Prime rents remained stable at £25.00 per sq ft. Our forecasts indicate an increase to £26.00 per sq ft by the year-end.”
Looking at investment headlines for the city for H1, Nick Wales, partner at Knight Frank, said: “Sheffield has so far seen a quiet first half of the year with investment volumes reaching £33.45m transacted in H1 2019. However given that volumes reached almost £130m during 2018, with a number of the city’s high profile office buildings changing hands, a more subdued period of activity was expected.
“Q2 recorded the £8.80m sale of Aspect Court at Pond Hill by Regional REIT Ltd to Sheffield Hallam University. The educational institution already occupies the building for academic accommodation.
“UK money continues to dominate the market with activity accounting for 71% of office investment volumes, over the past 12 months.”
