Market snapshot

Office Market Pulse Sheffield Q4 2014

Enquiry levels for large office requirements remain high in the city centre. Of the total 83,032 sq ft of take-up for Q4 2014, 47% accounted for transactions over 5,000 sq ft. 

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In this issue:

Enquiry levels for large office requirements remain high in city centre

Of the total 83,032 sq ft of take-up for Q4 2014, 39,312 sq ft (equating to approximately 47%) accounted for transactions over 5,000 sq ft.  

The total take-up for Q4 2014 has seen a 31% increase compared to the same period Q4 in 2013, up from 63,164 sq ft to 83,032 sq ft.

Take-up for Q4 2014 is up by 27% on the previous quarter Q3 2014, rising from 65,405 sq ft to 83,032 sq ft with both the city centre and out of town markets seeing notable increases.  

Enquiry levels continue to increase with a significant rise in requirements for over 10,000 sq ft – the majority of which are for city centre space - which bodes well for 2015.  

Demand for out of town freehold premises, mainly modern pavilion style office buildings with ample car parking, remains strong.

Planned developments to help combat low supply of grade A city centre office space

Supply of grade A space in the city centre remains low, although 3 St Paul’s is now under construction and will add 73,639 sq ft to the supply chain by the end of 2015.

Westfield Heath recently purchased Milton House which is currently undergoing refurbishment. Westfield will occupy part of the building but bring 26,940 sq ft of grade A space to the market further adding to the pipeline of quality city centre space in late 2015/early 2016.

Supply for out of town offices remains relatively constant with enough supply to be able to give prospective occupiers a choice of accommodation whether it’s grade A or B.  

Key occupational transactions


Size (sq ft) 

Landlord(s)/ vendor


One North Bank
11,000 Commercial Estates Group
Instant Offices
Vantage Park
9,962 Ordic Investments
Connexion 2
3,350 Moorfield Group
Brewster Partap
Source: Lambert Smith Hampton

Rents remain constant in Q4

Rents for grade A space remain constant although no lettings have been as high as the PWC deal which reached a headline rent of £21.00 per sq ft. That is not to say if a deal was done for best space in the city it would not reach a similar level, there just haven’t been any comparable transactions.  

Standard rents for grade A space remain at £15-17.00 per sq ft which is only likely to be topped when 3 St Paul’s officially comes to the market as a finished product.

Rents for grade B space in the city centre remain similar at £7-9.00 per sq ft.

The out of town office market has shown little deviation in rental levels from Q4 2013 to Q4 2014

New developments to ease stock shortage

There were no major office investment deals in Sheffield in Q4 2014 due to a lack of stock being brought to the market. There is investor demand in the city and we anticipate more activity in 2015 . Lack of available stock in the city centre will be eased by some significant developments in 2015/16:

Milton House is being refurbished with a confirmed 26,940 sq ft to be brought to the market with Westfield Health occupying the remainder of the building.

The next phase of Digital Campus, a Scarborough Group development, has been marketed which when built will provide 128,366 sq ft of grade A space.

View our latest UK Investment Transactions (UKIT) report.

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Tom Burlaga

0114 270 2706

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Tom Burlaga
Senior Surveyor - Agency

0114 270 2706

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