Shortfall in office take-up

Quieter year: Sheffield's Velocity Village
Quieter year: Sheffield's Velocity Village
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Sheffield’s office market is struggling, according to a report on the Yorkshire market by BNP Paribas Real Estate.

The international property adviser’s Yorkshire Office Market Report Spring 2012 says the city’s annual take-up of office accommodation is expected to fall short of the 2011 figure

Leighton Thomas, head of BNP Paribas Real Estate’s Sheffield office, said: “This year is expected to be quieter than 2011 for the Sheffield occupier market. Unless a sizeable requirement comes to the market in the next month or so take-up is expected to fall short of last year’s figure.”

BNP Paribas Real Estate says the investment market has been hit by a lack of suitable buildings, which is having a negative impact on the volume of transactions.

However, the Sheffield office investment market had a better first quarter than the market in Leeds, particularly when compared to the doldrums of the first quarter of 2011, when there were no office deals.

British Waterways’ £7.05 million purchase of South Quay means that the level of transactions in the first quarter of the year was comparable to the level during the last quarter of 2011 and a further £30 million deal had been completed since the end of the quarter with Moorfield Group’s purchase of the Velocity Village mixed-use scheme, comprising more than 100,000 sq ft of commercial office and retail space, 364 apartments and parking for around 550 vehicles, spread across five buildings.