Boom time for Sheffield office sales

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Office take-up in Sheffield in the last six months has been double that of the whole of 2014.

New research by national property consultancy Lambert Smith Hampton (LSH) revealed the first half of 2015 has already seen more than double the amount of deals transacted in Sheffield compared to last year.

But LSH’s latest Office Market Pulse report also revealed there has been a significant fall in the number of Grade A deals, as more than three quarters were below 5000 sq ft.

The letting of the 50,000 sq ft Old Post Office in Fitzalan Square to Sheffield Hallam University by LSH has been the largest deal of the year but excluding that, take-up still remains a third ahead of the same period in 2014.

Tom Shelton, senior surveyor at LSH’s Sheffield office, said the figures showed there was significant confidence returning to the market, which it was hoped could lead to further much-needed Grade A development to help ease the city’s supply problem.

He said: “The Sheffield office market is enjoying a strong year but good quality Grade A space remains in short supply, which continues to be a barrier to attracting major new occupiers to the city. The addition of 80,000 sq ft at 3 St Paul’s Place later this year will be very welcome but further speculative development is necessary to really unlock Sheffield’s full potential as it looks to reap the benefits of wider investment around the Northern Powerhouse project and an increase in devolved powers to the regions.”

Office take-up reached 170,980 sq ft in Q2, taking the total so far this year to 286,657 sq ft compared to 2014’s full year total of 289,176 sq ft.