Three times as many office deals were completed in the first quarter of the year than the previous quarter, according to The Sheffield Office Market Pulse, the latest research from national commercial property consultancy Lambert Smith Hampton (LSH).
This increase resulted in 170,000 sqare feet of office space being occupied and demonstrates a significant uplift in confidence in Sheffield’s office market.
Tom Burlaga, who heads up the agency team at LSH Sheffield, said: “The professional services sector accounted for the lion’s share of activity in terms of number of deals, but the burgeoning TMT sector saw the largest volume of space taken-up during the quarter – a trend which is currently being witnessed across all of the major Northern Powerhouse cities.
“Activity remains focused in the city centre, with refurbished buildings such as St James House in the Cathedral Quarter experiencing a flurry of new lettings.
“Q1 2017 saw a number of larger deals complete, with four transactions in excess of 15,000 square feet.
“There are also a good number of larger requirements in the marketplace, suggesting that confidence is returning among the larger corporates.
“This contrasts with 2016, where the majority of deals were sub-5,000 square feet.”
Though grade A office supply across Sheffield continues to dwindle, the city’s office supply will receive a welcome boost in the second quarter of 2017, finds the research.
The city centre currently has just two buildings which are capable of adequately accommodating a requirement of over 10,000 square feet.
However, the demolition of the former Grosvenor Hotel is close to completion, paving the way for the construction of HSBC’s new 140,000 square feet offices and hopefully stimulating further development.