Property consultants are predicting the market for offices in Sheffield is poised to turn the corner in 2014.
Research by BNP Paribas Real Estate shows there has been a pick up in the market this year and the consultants are predicting further improvements.
Office take-up in the city rose by 19 per cent for the first nine months of the year, with 192,188 sq ft of space being taken.
Guy Cooke, head of BNP Paribas Real Estate’s Sheffield agency, said: “In Sheffield, we predict next year will be a turning point for the market.
“This year the market has shown tentative signs of recovery and with confidence returning we are seeing take-up on course to outperform 2012. However, with the absence of any new completions, we will see availability levels continuing to gradually fall.”
Jo Warren, from BNP Paribas Real Estate’s research department, says a total of £21.3 million was invested in constructing new office property in Sheffield in the first nine months of the year, which is on a par with 2012.
However, Jo Warren says the figures disguise renewed positive feelings in the market, spurred on by CTP’s plans to complete the St Paul’s Place project by building the final, 76,000 sq ft, office block.
The development will be Sheffield’s first major office development in more than five years and will supply the market with much needed prime grade A office space, Jo Warren adds.
BNP Paribas Real Estate says the absence of prime office space has meant smaller grade B and C deals are sustaining the market and, as a result, the availability of offices fell by 13 per cent during the last year.
“With the continuing under-supply of truly prime space in the Sheffield central business district, unsurprisingly, top headline rents are unchanged at £19.50 to £20.00 per sq ft,” the consultants add.