Prime time to buy and rent offices in Sheffield
It’s a busy time in the Sheffield office market as the start of the year has seen a surge in confidence and deals. Lack of supply, however, is proving challenging for investors and tenants.
Latest research from Lambert Smith Hampton (LSH) shows 2017 started strongly in Sheffield’s office market. Three times as many deals were completed in Q1, compared to the previous quarter. This equates to 170,000 sqft of office space being occupied.
The LSH Sheffield Office Market Pulse demonstrates a significant uplift in confidence in Sheffield’s office market.
Tom Burlaga, head of the agency team at the LSH Sheffield office, said the professional services sector accounted from the lion’s share of activity in terms of number of deals, but the burgeoning TMT sector saw the largest volume of space taken up during the quarter. This is a trend being seen across all of the major Northern Powerhouse cities.
He added: “Activity remains focused in the city centre, with refurbished buildings such as St James House in the Cathedral Quarter experiencing a flurry of new lettings. Q1 2017 saw a number of larger deals complete, with four transactions in excess of 15,000 sqft. There are also a good number of larger requirements in the marketplace, suggesting that confidence is returning among the larger corporates. This contrasts with 2016, where the majority of deals were sub-5,000 sqft.
Researchers expect the dwindling Grade A office supply to receive a welcome boost this year. There are just two city centre buildings capable of accommodating over 10,000 sq ft currently. However the former Grosvenor Hotel is close to demolition, paving the way for the 140,000 sqft new HSBC offices. It’s hoped this will stimulate further development. At the same time, the completion of Acero Works at Sheffield Digital Campus and refurbishment of Steel City House and Westfield House (formerly Milton House) will see an injection of an additional 166,000 sq ft Grade A/B office space in Sheffield.
2017 has started with the balance of supply and demand continuing to prove challenging in the market. Lack of quality stock is hampering investment.
A snapshot of offices to rent in Sheffield on Boxpod
City centre offices can be found on Pinfold Street and Broad Street with prices and availability constantly changing due to short term lets. In the ever moving market, desk space, meeting rooms and work stations can be let in Sheffield. Additionally with strong transport links, there is available office space to rent in nearby Rotherham, Chesterfield and Barnsley.
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