Office occupier demand across Sheffield remained subdued during Q3 2016, with post-Brexit uncertainty leading to low levels of enquiries. Take-up for the city centre and out-of-town markets combined amounted to 44,724 sq ft – a 32% increase on the previous quarter but a fall of more than 50% on the same period last year.
While activity in the city centre improved from the previous quarter, at 17,750 sq ft, it was the out-of-town market that accounted for the lion’s share of take-up for the second quarter running, at 26,974 sq ft. This is largely due to the increased popularly of freehold stock among owner occupiers looking to take advantage of depressed capital values.
Looking ahead to Q4 2016, we anticipate a stronger finish to the year with occupiers making up for lost time post-Brexit.