A tale of two cities in office markets

YORKSHIRE'S two biggest office markets painted very different pictures last year after take-up in Leeds dropped 37 per cent below the 10-year average while in Sheffield it rose by nine per cent, according to a new report.
By The Newsroom
Published 1st Jul 2010, 13:01 BST
Updated 1st Jul 2010, 13:01 BST

Take-up in Leeds was 632,122 sq ft, while in Sheffield it reached 386,885 sq ft.

The findings come from Lambert Smith Hampton's (LSH's), National Office Report 2010, which analysed 37 UK locations.

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While the office market in Leeds showed a marked improvement in the first quarter of 2010 after take-up reached 195,570 sq ft, Sheffield has given way to a poor start with activity of about 45,000 sq ft, down 42 per cent on the same period last year.

Prime rental values in Leeds have remained robust, continuing to grow over 2009 in both the city centre and out of town markets, while in

Sheffield they continue to fall, with city centre and out of town rents down by seven per cent and 9.7 per cent respectively.

Adam Varley, head of office agency at LSH Leeds, said: "Demand profile for both the city centre and out of town markets has been very

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similar over the past year, with SMEs propping up the market."

Rob Darrington, head of office agency at LSH Sheffield, added: "Activity across Sheffield was largely driven by the public during 2009, with Sheffield Hallam University's acquisition of Oneleven

Arundel Gate and the Department for Children, Schools and Families pre let at 2 St Paul's Place equating to almost one third of the total annual take-up.

"While the public sector remains a key source of demand, it is unclear as to where the next occupier from within this sector will come from, given the Government's intention to radically rationalise its property holdings."

Related topics:LeedsYorkshireGovernment