According to our latest research, Sheffield developers should start building grade A office accommodation now so they can exploit the shortage of stock when the up-turn in demand returns in 2014.
Our report, National Office Market 2011, states that GDP levels are forecast to return to pre-recession levels by 2013 or 2014, with demand for office space in Sheffield increasing as a result.
Rob Darrington, Head of Office Agency in our Sheffield office, said: “Demand for office space in Sheffield has improved during 2011, with many companies now only considering relocating if it is to grade A accommodation.”
Stock levels down across all grades
The current availability rate across all grades is now down to 7%, compared to last year which was 9.5%. Furthermore, the average transaction size in Sheffield has increased from just over 4,000 sq ft to 7,250 sq ft, this year, which demonstrates that there is a demand from larger corporates.
Only 200,000 sq ft of grade A stock available in Sheffield
Rob explained: “Only 2.5% of total built stock in Sheffield is deemed as grade A, and there is now less than 200,000 sq ft available in the city centre, equating to less than one year’s take-up. 2011 total take-up is already at 330,000 sq ft. A number of pending transactions may take it closer to 350,000 sq ft by the end of the year.”
Rob concluded: “Supply of good quality buildings in Sheffield is quickly diminishing. Now is the time for developers to build more grade A space if we want to attract new firms to the city and encourage local business growth.”