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News - 31/01/2018

Strong finish to 2017 for Sheffield office market

Sheffield’s office occupier market witnessed a strong finish to 2017 as take-up in the final quarter pushed overall figures to 385,602 sq ft for the year, some 24% ahead of 2016 and well above the 10-year average.

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Our latest Sheffield Office Market Pulse, which provides investors, occupiers and developers with detailed insight across the region, revealed that combined take-up across the city centre and out-of-town markets reached 75,315 sq ft in Q4 2017.

Tom Burlaga, Associate Director at LSH Sheffield, commented: “The completion of new grade A space at Digital Campus was a catalyst for activity, while repositioned grade B buildings continue to perform well and have seen solid rental uplifts and good levels of take-up. Out-of-town, demand remains focussed on freehold, pavilion style offices for which there is a dwindling supply.”

Despite a handful of larger office investment transactions taking place across Sheffield during H1, just one deal completed in Q4, bringing the the total investment volume for the year as a whole to £50.4m; more than half that of 2016.

Luke Symonds, Associate Director of Capital Markets across Yorkshire, commented: “Interest remains driven by current occupier sentiment and large scale improvement projects throughout the city core and the key challenge going forward will be to communicate the long-term sustainability of the Sheffield office market to the investor community.”

Read the full Q4 2017 Newcastle Office Market Pulse