Rent rise boost for Sheffield’s office market

Knight Frank’s Sheffield Market Activity Report, published today, highlights record city centre office rents in the last year, as well as increased investment activity across the South Yorkshire region.

Sheffield was one of only three of the UK’s 11 key regional markets to see headline office rents rise in 2010.

A steady take-up of Grade A space at prime locations in the core city area included the city’s largest transaction – Kennedys solicitors’ 16,700 sq ft deal at Ventana House, which set the record rent for the Sheffield market of £20 per sq ft.

Out-of-town office take-up in 2010 was closely in line with the city centre level and just two per cent below the annual average.

In the industrial sector, the large-scale distribution market is expected to remain buoyant, on the back of a previous year that saw healthy levels of take-up of small to medium-sized stock. Last year also saw a revival in demand for big sheds, culminating in more than 1.7m sq ft of take-up in the latter half of 2010 alone.

Last year witnessed a “notable improvement” in South Yorkshire’s investment activity, with the number of recorded transactions increasing by 45 per cent, including Canada Life’s £24m purchase of St Paul’s Place.