Global engineering consultancy breaks Sheffield office rent record

Arup, the global engineering consultancy, has taken 16,000 sq ft of quality office space at 3 St Paul’s Place in Sheffield city centre.

The deal, at £23 per sq ft, sets a new record for office rents in the city.

Developed by CTP and Development Securities and built by Bowmer & Kirkland, 3 St Paul’s Place is the final part of the £130m Heart of the City project. The scheme is the first speculative office building in Sheffield to be developed since the recession.

The 10-storey building will be completed and ready for occupation by the end of January 2016.

David Topham, director of Manchester-based developers CTP, said: “Arup’s decision to relocate to 3 St Paul’s Place is a resounding endorsement of our development. It is also extremely encouraging that a company with Arup’s reputation for quality and technical excellence has chosen our building as their base in Sheffield.

“The record rent achieved is also a vindication of our decision to develop a speculative Grade A office building in Sheffield in the midst of the recession as well as a reflection of the quality of office space we have created. There is already strong interest in the remainder of the building and we look forward to announcing new tenants in due course.

“These are exciting times for St Paul’s Place, which is now an established high-quality office location in the heart of Sheffield. The imminent completion of the building, the greenest, most energy-efficient and most modern in the city marks the revival of confidence in Sheffield city centre.”

With a presence in Sheffield since 1957, Arup has been behind many of the city’s landmark projects from Park Hill flats and Ponds Forge International Pool to the City Hall refurbishment and the Diamond at the University of Sheffield.

Jim Bell, office leader, commented: “Our Sheffield office has a fantastic reputation, and is an important location for the firm. We recruit excellent graduates from the two Universities, and attract staff from farther afield with Sheffield’s reputation as a lively, outdoor city. Being in the heart of the city is key to our belief in vibrant cities and low-energy futures, and 3 St Paul’s Place is an ideal location and a landmark building.

“By getting in early, we have secured the top floors of the building with spectacular views across the city, and been able to negotiate exclusive additions including extra energy-efficiency measures and a roof terrace, so the deal represents exceptional value for money.”

Arup is also working on numerous projects that are shaping Sheffield’s future including the New Retail Quarter, which will transform the city’s retail offer, and the Olympic Legacy Park.

The construction of 3 St Paul’s Place went ahead following an agreement between CTP and Development Securities with Sheffield City Council and the Department for Communities and Local Government.

3 St Paul’s Place comprises 76,000 sq ft of prime Grade A office space with each 8,000 sq ft floor offering offices suites from 2,000 sq ft. It is rated BREAM Excellent.

CTP and Development Securities are being supported by Sheffield City Council, regeneration agency Creative Sheffield, SCR JESSICA, which was set up to support infrastructure and real estate investment opportunities across the region, and the European Regional Development Fund (ERDF), managed by the Department for Communities and Local Government.

St Paul’s Place is a high-quality mixed-use scheme which features the 161-bed St Paul’s Mercure 4* hotel; No1 and No 2 office developments occupied by lawyers DLA Piper, RBS, Barclays, accountants PwC, Coutts and the Department of Children, Schools and Families; a 330-apartment residential tower block; the famous “Cheesegrater” car park, operated by Q-Park; a casino; and restaurants and cafes including Pizza Express, Piccolinos, Café Nero, Bill’s Restaurant and Café Rouge.

The architects of 3 St Paul’s Place are Manchester-based Hodder and Partners, and the marketing agents are Knight Frank’s Sheffield office along with the Leeds offices of BNP Paribas and DTZ.

Richard Dunhill of BNP Paribas commented: “3 St Pauls Place delivers much-needed prime Grade A office space within Sheffield’s city centre core. We are very proud to be part the team on this successful development which has helped regenerate this area within the heart of the city. The news that Arup is moving is very significant and sets the seal on what has been achieved thus far.”

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