Market snapshot

Office Market Pulse Sheffield Q1 2013

Findings from our latest Sheffield Office Market Pulse show a dramatic uplift in occupier activity in both the city centre and out of town markets. All the deals completed were for grade B and C space, indicating that location is increasingly becoming a driving factor for occupiers.

Download a PDF of our latest Sheffield Office Market Pulse, or read and sign up to receive Office Market Pulses from other UK centres.

In this issue:

Promising start to 2013 for Sheffield’s city centre and out of town office markets

After a slow final quarter in 2012, Sheffield city centre office take-up increased by 52% in Q1 2013, to reach 36,662 sq ft (Q4 2012: 19,379 sq ft). This figure is down by more than a third on the same quarter last year (Q1 2012: 57,490 sq ft).

Out of town, there was a dramatic uplift in activity, with a first quarter take-up of 23,480 sq ft - more than double the same period last year (Q1 2012: 10,450 sq ft). 

This brings the year-to-date total for the Sheffield office market to 60,142 sq ft, 11% down on the same period last year (Q1 2012: 67,940 sq ft) but more than double that recorded in the final quarter of 2012 (Q4 2012: 29,207 sq ft).

For a detailed breakdown of Sheffied city centre and out of town take-up by grade for Q1 2013, please click here or on Chart 1 to the left of this article.

Key Sheffield office lettings Q1 2013

Property  Size Landlord(s)  Tenant / Purchaser 
Arundel House, Furnival Gate 18,000 sq ft Roughlea Properties Sheffield Hallam University
The Mount, Glossop Road 10,000 sq ft Aviva Voice UK
722 Prince of Wales Road 7,000 sq ft 722 Ltd PCT/NHS

Source: Lambert Smith Hampton

Sheffield’s grade A office supply remains stable, as occupiers consider location over quality

Total supply in the Sheffield office market currently stands at 811,976 sq ft, of which only one third is of grade A quality. 

Despite this, grade A availability has been maintained, with all of the deals completed in Q1 2013 for grade B/C space.

Recent months have seen a trend for grade B/C space being converted to alternative uses, including re-development for residential and student accommodation, which will cause secondary stock levels to decline substantially in the next 6-12 months.

For a breakdown of Sheffield city centre and out of town office supply by grade for Q1 2013, please click here or on Chart 2 to the left of this article.

Fall in Sheffield’s out of town office rents

Prime city centre headline rents remain unchanged at circa £20 per sq ft. 

Prime out of town rents fell for the first time in nine months, from £14 per sq ft to £13 per sq ft. However, this figure remains higher than the same period last year.

For a breakdown of Sheffield city centre and out of town office rental values for Q1 2013, please click here or on Chart 3 to the left of this article.

How did the national investment market perform in Q1 2013?

Total investment volumes in Q1 2013 rose by 8% in comparison to the previous quarter, reaching £8.05bn. 

The average deal size reached a new high of £28m. 

This activity was despite investment in central London offices falling by 25% in Q1 2013.

What does this mean for the market? Find out in UKIT 2013 and read our predictions for the year ahead.

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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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