Despite the lack of new office developments, the amount of businesses taking up office space in Sheffield still increased from 2010 figures. Office occupancy was up by almost 50 per cent in the final three months of 2011.
Office space let during October – December 2011 was 90,357 sq ft, compared to 45,118 sq ft during the same period in 2010. Office take up for the whole year increased from 238,054 sq ft in 2010 to 350,410 sq ft for 2011.
Rob Darrington, from property consultants Lambert Smith Hampton, said about the increased demand: “It’s encouraging to see that occupier take-up has risen to an all time five year high, despite the prevailing economic conditions, lack of grade A office space and new build development in both Leeds and Sheffield.”
Tim Bottrill from Knight Frank agreed: “Sheffield was one of only a handful of the UK’s regional markets to see an increase in office take-up in the first half of 2011 compared with the previous year, and it’s pleasing to see the momentum did not drop as the months continued.
“The figures make welcome reading, because a healthy office market is an indication of the quality of buildings Sheffield’s commercial property market portfolio has to offer. Businesses relocating here are also a welcome boost for the city’s economy during difficult times for the country as a whole.”
The largest take up of office space in Sheffield was PlusNet, an internet provider, which acquired 53,000 sq ft of space in the city centre. Speaking of the move, Jamie Ford, Chief Executive Officer, stated: “This is an incredibly exciting time for our business and signals another milestone in our amazing story. 
“With such rapid expansion over the last two years this move will enable all business operations including our customer services, to remain together under one roof. This is something incredibly unique for a telecoms provider in the UK.
“At the same time, the move gives us the space to necessitate further expansion as we continue to grow at pace and cements our commitment to Sheffield for the foreseeable future.
“Our staff have worked incredibly hard to achieve this success and I am delighted that we are in a position to reward them with a state-of-the-art working environment. As we continue to grow, I hope the new building acts as another factor to attract local talent to our business.”
The average cost for prime location office space in Sheffield city centre is £20 per sq ft.
