Grade A of­fice sup­ply con­tin­ues to fall across the Sh­effield re­gion

Yorkshire Post - Business - - COMMERCIAL PROPERTY -

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.”

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