Office take up in Sheffield for the first quarter of 2017 has totalled 170,000 sq ft – just 30,000 sq ft less than for the whole of 2016.
Thirty-five companies relocated or moved into Sheffield between January and March this year with office space being snapped up in locations from newly built St Paul’s Place in the city centre to multi-million-pound refurbished project Meadowhall Business Park.
According to the report, compiled by Creative Sheffield with the city’s main commercial property agents, the Sheffield office of Knight Frank was responsible for the biggest percentage of deals in the quarter – handling a third of the transactions and securing tenants and buyers for 56,650 sq ft of space.
The most notable deals for Knight Frank included 16,000 sq ft to marketing agency Jaywing at Albert Works on Sydney Street; 9,100 sq ft at Players House in Attercliffe sold to manufacturer Gripple and 6,000 sq ft to employment and training provider People Plus.
ARBA Group’s Meadowhall Business Park, close to the new Ikea development and Meadowhall Shopping Centre, saw brisk business with 12,950 sq ft of space occupied by companies including NG Bailey, Chique Photography and Auburn Ainsley, with strong interest in the majority of the rest of the business park.
Handelsbanken moved into 3,500 sq ft at 3 St Paul’s Place, while 3D design specialists Lightwork Design expanded into 5,800 sq ft at Hillsborough Barracks.
“So far this year, moves have been occupier driven rather than inward investment,” said Ben White at the Sheffield office of Knight Frank.
“There was a blip last year following the first announcement about Brexit and then it was business as usual. There are currently over a dozen active enquiries for space over 10,000 sq ft.
“Following a shortage of high specification office accommodation there is now speculative development, such as Acero, the latest phase of the Digital Campus with 80,000 sq ft of Grade A space offering large and flexible floor plates. In addition is Steel City House offering 66,000 sq ft of Grade A office space in the Heart of the City, both ready for late 2017, which when added to existing well-appointed, city centre accommodation such as 3 St Paul’s Place, Westfield House and The Balance, occupiers do have some choice.
“With supply of prime offices diminishing, we are now looking at rental growth in the office sector, which is positive news for investors and developers.”
Total office take-up in 2016 reached 201,500 sq ft, 36 per cent below the ten-year average. In 2016, prime headline office rents remained unchanged at £23.00 per sq ft.
