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17/12/2008 |
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SHEFFIELD'S OFFICE MARKET - IT'S READY AND WAITING
The property industry has faced challenging times throughout 2008 but Adam Hodgson, Associate Director for Jones Lang LaSalle, tells us why he believes Sheffield is well equipped to weather the storm.
"Without question, the recent economic situation has presented challenges to all sectors of the property industry and there has been an inevitable slow-down in occupier take-up and activity within the office market. However, in the midst of the turmoil, Sheffield has emerged as a regeneration hotspot and as a city that is ready to meet its investors.
"The Objective One funding programme has brought about the delivery of a number of high quality office developments within Sheffield City Centre, a large number of which are scheduled for completion in 2009. Whilst the current levels of office supply equate to approximately 2 to 3 years of city centre take-up, indicating that there will be short-term over supply, a key point to make is that there is a broad variety of product available and no two business requirements are alike. Therefore, here is a city that is ready and equipped to accommodate a wide spectrum of requirements.
"Key developments that completed in 2008 include the second phase of Carillion's £80M The Square development which has pioneered the regeneration of the Castlegate area of the city. The Square has already attracted South Yorkshire Passenger Transport Executive, Q Park and Travelodge to Phase 1 and has recently completed the 42,000sq ft, 6 floor Grade A office building in Phase 2. The development has secured planning consent for a total 250,000sq ft of office space and has already changed the approach to Sheffield from the Parkway. Additionally, the £250M Velocity Village development has a total of 91,000sq ft of recently completed office space now available. Schemes scheduled for completion in 2009 include St Paul's Place which is part of the Heart of the City scheme, the Digital Campus and City Gate on St Mary's Road.
"Though different in terms of accommodation and offering, all the schemes have one thing in common - they are all benefiting from the attractiveness of Sheffield as a location. A major criteria for occupiers is the quality of life available for their employees and Sheffield can deliver a vibrant, cosmopolitan city with fantastic public realm with the added bonus of being on the doorstep to the Peak District. People get the best of both worlds. The city has good demographics too, there is a large skilled workforce in and around Sheffield and there are around 15,000 skilled graduates emerging from the two universities every year. The infrastructure is also in place, with easy motorway connectivity to the rest of the country and via Robin Hood airport the rest of the world.
"Perhaps the most attractive factor for companies looking to locate to Sheffield though is the competitive rental figures. Prime rent in Sheffield is a mere £18 psf in comparison to £26 psf in Leeds.
"In the current economic climate, companies are looking for value for money more than ever and when considering potential office space will want to ensure that all their criteria are met. Therefore, those schemes which are well positioned, have a high quality, flexible offering and present a good return for money will undoubtedly be at the top of the list. Sheffield has made great regeneration progress and the combination of major improvements to the city’s infrastructure, quality of available office accommodation and reduced, competitive rental levels make Sheffield a viable option for inward investors.
"Creative Sheffield is working hard to promote the city's competitive office product with the recently launched 'Sheffield Office Portfolio'
(www.sheffieldofficeportfolio.com) and is also promoting the city's environment as a viable proposition for investment. As a result of all these factors, the long-term prospects for the UK's fourth largest city remain strong."
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