Office take-up in Sheffield is set to exceed last year’s totals, but won’t prompt an increase in rents or new development, according to property consultant Knight Frank.
“Judging by activity so far this year, and despite the ongoing debate about the effects of public sector cuts on office demand, 2011 is firmly on course to exceed the level of take-up seen in 2010,” says Knight Frank partner Tim Bottrill.
Knight Frank is basing its prediction on figures for the first half of the year, which show that office takeup totalled 154,340 sq ft - 77 per cent higher than in the first half of 2010.
The firm says deals that have been pivotal to the increase include Sheffield Hallam University expanding its presence in the city centre at the renovated Aspect Court and Sheffield Business Park where Unit 2 Europa View’s 20,000 sq ft of office space has now been let.
It adds that a number of deals are imminent or, like South Yorkshire Police’s move to Carbrook House, already agreed for the third quarter of 2011.
“Headline rents are unlikely to show any growth beyond £20.00 per sq ft as the best located Grade A space in the city centre is now fully let,” said Mr Bottrill
“Speculative development is unlikely to return to the city centre for the time being, although prime city centre sites are available to pre-let, including final phases at both St Pauls Place and Digital Campus.”