Grade A office supply continues to fall across the Sheffield region
THE SUPPLY of grade A offices in Sheffield fell by 25 per cent during the first quarter of the year.
A total of 110,000 sq ft, split across seven buildings, is on the market while out-of-town just 16,285 sq ft of grade A space is available across four buildings, according to research from national commercial property consultancy Lambert Smith.
Vidrio – the next phase of development at Digital Campus – is likely to be on site over the next few months.
However, there is currently no other new space coming to market. The problem has been compounded by much of the secondary office space in the city centre being converted to residential and student use.
Combined take-up across the city centre and out-of-town markets was 93,951 sq ft in Q1, up 25 per cent on Q4 2017 albeit down 81 per cent year-on-year, said Hampton (LSH).
LSH’s latest Sheffield Office Market Pulse also revealed that a total of 15 deals were completed during the first quarter, underpinned by the professional services sector which accounted for 36 per cent of total activity.
Notable transactions included Spaces’ 25,000 sq ft letting at Acero Works and the Home Office’s relocation to 21,000 sq ft at Foundary House.
Tom Burlaga, associate director at LSH’s Sheffield office, said: “The lack of grade A space across both the city centre and out-of-town markets is of significant concern. However, the fact that repositioned grade B buildings continue to perform well is likely to pave the way for further refurbishments which will hopefully alleviate any pressure until such time that new schemes are brought forward.
“The council’s recent publication of its Heart of the City II masterplan is welcomed and, although the plans have had a long gestation, the silver lining over the delay is that the proposed scheme now allows for a better mix – of retail, leisure and office – than the original Retail Quarter scheme and we can look forward to a 24-hour city with a considerably enhanced bar, hospitality and leisure offer which is crucial if Sheffield is to attract increased inward investment.”