Lack of office space in Sheffield a ‘significant concern’

Acero, second right, on Sheaf Street is 75 per cent under offer. Vidrio, right, could be complete this year.
Acero, second right, on Sheaf Street is 75 per cent under offer. Vidrio, right, could be complete this year.

The UK’s largest engineering and design consultancy is opening an office in Sheffield as the occupier market continues its strong start to 2018.

Atkins has taken half of the third floor in Acero, between the bus station and Sheaf Street, joining drug modelling firm Simcyp which occupies a floor with room for up to 150 people, and ‘flexible workspaces’ company Spaces which has taken two floors.

Acero was jointly funded by Sheffield United co-owner Kevin McCabe’s Scarborough International Properties Limited and Metro Holdings of Singapore.

Signs up on the building say it is ‘75 per cent under offer’.

Paul Holcroft of Scarborough International Properties, said: “We continue to attract new high-profile businesses and are delighted to welcome such a well-known and respected tenant to Acero’s growing business community.”

The deal continues Sheffield’s office occupier market’s strong start in 2018.

Combined take-up across the city centre and out-of-town markets was up 25 per cent on quarter four 2017, according to Lambert Smith Hampton. It said a total of 15 deals were completed during the first quarter and across the city centre, grade A supply fell by 25 per cent to just 110,000 sq ft split across seven buildings.

Tom Burlaga, of LSH Sheffield, said the lack of grade A space was “of significant concern.”

He added: “The council’s recent publication of its Heart of the City II masterplan is welcomed 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.”

Vidrio, a neighbour to Acero, is likely to be on site over the next few months, but there is currently no other new space coming to market, he added. The problem has been compounded by much of the secondary office space in the city centre being converted to residential and student use.