Big demand for out-of-town units

EXPERTS are predicting a shortfall in good quality out-of-town units over 10,000 sq ft in the latter half of this year thanks to a combination of high demand and strong take-up.

The prediction from the Sheffield office of Knight Frank is based on recent activity at Sheffield Business Park where Unit 2 Europa View’s 20,000 sq ft of office space has now been let, as well as Carbrook House where 35,770 sq ft was sold earlier this month to South Yorkshire Police.

At Sheffield Business Park alone, whose other occupiers include Stanley Black and Decker and HSBC, recent deals have included 10,000 sq ft let to Excel Car Parking, 6,000 sq ft sold to Selima Software and 2,000 sq ft let to Stafforce.

In addition, 16,000 sq ft of Unit W is currently under offer, while the serviced space at the business centre is approx 95% occupied.

Knight Frank associate Rebecca Schofield said the current flurry of deals meant an excellent first half of the year for out-of-town interest – but would inevitably result in a lack of supply for the latter part of 2011.

“Take-up in the second quarter was 32,776 sq ft for out of town,” she said, “and this does not even take into account South Yorkshire Police’s move to Carbrook which was agreed in July.

“Already 50,000 sq ft of out-of-town office accommodation is under offer or let for Q3.

“This will leave no detached out-of-town units over 10,000 sq ft and will see the market reliant on development-led or multi-let opportunities only.”