Returning confidence means hope for new jobs

A former Home Office building in Sheffield could soon become a base for fast-growing companies.

A 4m refurbishment has been completed at Sheffield's seven-storey Aspect Court. The building, in Pond Hill is close to Sheffield's Digital Campus, an area which has already attracted a number of technology-based companies.

Tim Bottrill, a partner at Knight Frank's Sheffield office which is acting as agents for Aspect Court, said: "This major facelift really brings Aspect Court into the 21st century.

"Its location in the heart of Sheffield city centre provides an exciting new opportunity for office lettings with immediate availability."

Accommodation ranging from 2,000 to 40,000 sq ft is available with on-site car parking.

In a separate development, Knight Frank has also been appointed as joint letting agents for another major Sheffield commercial property scheme. The six-storey Crown House, which is part of the first phase of regeneration in the West Bar area, cost 8m to complete.

The area is already home to several key Government and legal operations, including law firm Irwin Mitchell and the Home Office.

Yesterday. Mr Bottrill reported "burgeoning confidence" in the private sector.

He added: "I think there is more optimism around. Although there are not yet the strength of enquiries that will really kick start a sea change in the market, everyone is still committed to trying to bring deals to completion."

Sheffield has a number of high -profile speculatively-built developments available in sites such as Velocity, Crown House, City Gate, Northbank and Saville House.

Mr Bottrill added: "We have seen some recent movement in these developments. Solicitors firm Kennedys is taking one and a half floors in the Sheffield Digital Campus, Capita has moved into Velocity combined with the development of a new business centre in there.

"We have had interest in Northbank, Crown House, City Gate and Saville House but no firm offers from tenants this year. All are still open to enquiries.

"We have seen a move towards the new media and digital sector which is still performing well. This has been one of the success stories throughout the recession."

Mr Bottrill said that the financial services sector had suffered during the economic slump.

He added: "There is, however, more private sector confidence around than this time last year. A few of the private sector businesses in Sheffield are now looking to recruit at graduate level for the end of this year and speculatively for the start of next year. These have included some of the big legal firms, which does show there are signs of improvement."

Mr Bottrill said Sheffield was well-placed to benefit from any relocations of civil servants from London, due to its large amount of high quality office space.

Prime headline rents in Sheffield have remained around 20 per sq ft since the last quarter of 2009, and Knight Frank forecast further stabilisation in rental performance.

Mr Bottrill added: "It's been a tough year for all the regional cities and Sheffield has been no different. However, we had very good office take-up last year – better than average."

Looking ahead

Tim Bottrill, of property consultancy Knight Frank, said private-sector confidence was growing, but must be nurtured.

He added: "There are some big plans for Sheffield. These include the former NUM building in Barkers Pool, the Sevenstones project and Scottish Widows buying The Moor development.

"We still have a tenants' market. At some point it will become a landlords' market and that's when you will find rising rents."