There is optimism for the commercial property market in Sheffield, bolstered by a healthy technology sector, according to the ‘Sheffield City Region supplement’.
This is a report compiled by business information provider TheBusinessDesk.com, technology companies’ representative DLA Piper and Sheffield Hallam University.
The Sheaf Valley, one of Sheffield’s eleven designated City Centre Quarters, is described as “the city’s most radically reshaped area”. Here a number of high-profile commercial property constructions have been completed, including the £110m Sheffield Digital Campus – a commercial property innovation designed to put Sheffield in the middle of Europe’s technology sectors where there is over 600,000 sq ft of custom-built commercial property space for digital, ICT, multi-media and software companies. This region in Sheffield has been singled out by Knight Frank as “one of the most important commercial sections of the city”. The high level of visitors passing through, coupled with “superb public realm space” leads the commercial property specialists to conclude that Sheffield’s flagship digital property development “is a very attractive place for businesses to locate to”.
Among offices, demand for Grade A commercial property in Sheffield is said to remain strong. Examples given are Ventana House, a 50,000 sq ft office building in Sheffield’s digital campus, now fully occupied. Take-up in Sheffield offices is found to be “77% higher than the first half of 2010”, making Sheffield “one of only a handful of the UK’s regional markets” to see an increase.
The report advises that we should all keep an eye on Sheffield’s out-of-town commercial property opportunities. High commercial property demand and strong commercial property take-up is expected to result in “a shortfall in good quality out-of-town units over 10,000 sq ft” towards the end of 2011. The government has designated Sheffield as an Enterprise Zone and the relaxed planning laws and discounted business rates are expected to invite an influx of entrepreneurs seeking commercial property opportunities in Sheffield.
In retail, the news is a little more mixed. Some of Sheffield’s commercial property plans, such as Sevenstone, are currently on hold. The proposal, led by developers Hammerson, was initially set to furnish Sheffield with 860,000 sq ft of space as part of the £600m New Retail Quarter. The intention was to create a shopping and leisure environment positioning Sheffield as a retail destination to rival other nearby cities. Since the recession, work has been halted, although a recent £10m investment from Sheffield City Council has given rise to “a general confidence that Sevenstone will go ahead”, according to reports.
Confidence is key to maintaining the economic recovery in Sheffield and the rest of the UK, asserts the report. A rise in bank lending will lead to businesses feeling confident enough to expand their commercial property portfolios, “and once they start moving the economy is likely to as well”, something we’d all be keen to see.
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