Market snapshot

Office Market Pulse Sheffield Q1 2014

The Sheffield office market has improved significantly since the start of the economic recovery, with office leasing activity up by a third in 2013. Following CTP’s decision to forge ahead with 3 St Paul’s Place, the city’s first major speculative office development in more than five years, there is a general feeling of optimism that this positive trend will continue throughout 2014.

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In this issue:

Sheffield office market sees slow start to 2014

The office rental market in Sheffield got off to a slow start in 2014, with take-up for the first quarter totalling 30,367 sq ft – down some 50% on the same period last year (Q1 2013: 60,142 sq ft).

However, as enquiry levels have generally increased, the low level of take-up reflects the lack of quality supply in the city centre as opposed to low demand.

The market also remains characterised by the SME sector, with almost 77% of activity comprising lettings within the sub 5,000 sq ft size bracket.

For a detailed breakdown of take-up by grade, click here or on Chart 1 to the left of this article.

Table 1: Key occupational transactions, Q1 2014


Size (sq ft)

Landlord / Vendor Tenant / Purchaser
Saville House


Unknown Places For People
Unit P4, Sheffield Business Park


Unknown Abtech
St James House


Unknown Medex Group

Source: Lambert Smith Hampton

Building work underway at 3 St Paul’s Place

Supply levels remained stable over the first quarter, with availability of grade A stock currently standing at 276,000 sq ft – the majority of which is in the city centre (63%).

Building work at 3 St Paul’s Place - the first speculative office development in Sheffield since the recession - is due to start imminently, which will inject a further 84,000 sq ft of grade A space into the market.

Conversely, obsolete office space continues to be subject to change of use applications for residential and student accommodation, which could take a large percentage of available space away from the market. A recent example is the 1970s-built Telephone House, which was purchased by developer Vita to be converted into 347 ‘high-standard’ apartments.

For a breakdown of office availability, please click here or on Chart 2 to the left of this article. 

Incentives set to harden as pressure on supply continues

There has been little movement in Sheffield’s prime headline rents, with the city centre currently standing at £20 per sq ft and out of town at £14 per sq ft. However, the pressure on supply will continue to harden rental incentives, particularly for grade A space.

For a breakdown of rental figures, please click here or on Chart 3 to the left of this article.

How did the national investment market perform in Q1 2014?

The next edition of our quarterly UK Investment Transactions (UKIT) research report is now available to download.

To register for your copy, contact 

Key investment transactions, Q4 2013




Vendor Purchaser
54-56 Fargate (office and retail)



M&G Real Estate Private investor
Broadfields Business Park



JF Finnegan/Primesite Private investor

Source: Lambert Smith Hampton, UKIT Q4 2013 data

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Tom Burlaga
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