Businesses upgrading their accommodation in central Sheffield led to an increase in demand for good quality offices in the city last year, according to commercial property experts Knight Frank.
The property consultants’ latest Regional Office Market Presentation research shows that new and grade A offices in Sheffield’s core city area, in particular, was steadily absorbed during 2010. Knight Frank says stocks of good quality accommodation fell by 20 per cent last year to stand at 285,000 sq ft
Sheffield office partner Tim Bottrill said: “Generally, we anticipate relatively robust levels of take-up over the first half of 2011, with expectations of up to 80,000 sq ft of space to transact in the first quarter of this year alone.
“In the absence of any speculative development, Grade A supply will steadily diminish through the year and consequently, we expect both rents and incentives to harden.”
Mr Bottrill says the same cannot be said for poorer quality second-hand offices, where increasing supply and lower demand will put pressure on rents to fall.