Office take up in Sheffield reaches 170k sq ft in Q1 of 2017

Office take up in Sheffield for the first quarter of 2017 has totalled 170,000 sq ft, which is just 30,000 sq ft less than for the whole of 2016.

Thirty-five companies relocated or moved into Sheffield between January and March this year, with office space being snapped up in locations from the newly built St Paul’s Place in the city centre to multi-million-pound refurbished project Meadowhall Business Park.

According to the report, compiled by Creative Sheffield with the city’s main commercial property agents, the Sheffield office of Knight Frank was responsible for the biggest percentage of deals in the quarter – handling a third of the transactions and securing tenants and buyers for 56,650 sq ft of space.

The most notable deals for Knight Frank included 16,000 sq ft to marketing agency Jaywing at Albert Works on Sydney Street; 9,100 sq ft at Players House in Attercliffe sold to manufacturer Gripple and 6,000 sq ft to employment and training provider People Plus.

ARBA Group’s Meadowhall Business Park, close to Meadowhall Shopping Centre, saw 12,950 sq ft of space become occupied by companies including NG Bailey, Chique Photography and Auburn Ainsley, with strong interest in the majority of the rest of the business park.

Handelsbanken moved into 3,500 sq ft at 3 St Paul’s Place, while 3D design specialists Lightwork Design expanded into 5,800 sq ft at Hillsborough Barracks.

Ben White from the Sheffield office of Knight Frank, said: “So far this year, moves have been occupier driven rather than inward investment. There was a blip last year following the first announcement about Brexit and then it was business as usual. There are currently over a dozen active enquiries for space over 10,000 sq ft.

“Following a shortage of high specification office accommodation there is now speculative development, such as Acero, the latest phase of the Digital Campus with 80,000 sq ft of Grade A space offering large and flexible floor plates.

“In addition is Steel City House offering 66,000 sq ft of Grade A office space in the Heart of the City, both ready for late 2017, which when added to existing well-appointed, city centre accommodation such as 3 St Paul’s Place, Westfield House and The Balance, occupiers do have some choice.

“With supply of prime offices diminishing, we are now looking at rental growth in the office sector, which is positive news for investors and developers.”

Total office take-up in 2016 reached 201,500 sq ft, which is 36% below the ten-year average.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →