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LANDLORD: Sheffield City Council TENANT: HSBCTERM: Confidential SIZE: 140,000 sq ft DATE: Q1 2019
LANDLORD: APAM/Britannia TENANT: Managed Office SolutionsTERM: 5 Years SIZE: 11,647 sq ft DATE: Q1 2019
PURCHASER: Corum Asset ManagementVENDOR: Sidra Capital (Saudi)PURCHASE PRICE: £24.65MYIELD: 6.32%DATE: Q1 2019
KEY TRANSACTIONS
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£46.
10m
£81.3
6m
£0.0
m £24.
65m
£24m
92,
383
72,
015
105,
235
93,
951
197,
101
80,0
00100,
000
150,
000
110,
000
93,5
00
6.00
%
6.00
%
6.00
%
6.00
%
6.00
%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£46.
10m
£81.3
6m
£0.0
m £24.
65m
£24m
92,
383
72,
015
105,
235
93,
951
197,
101
80,0
00100,
000
150,
000
110,
000
93,5
00
6.00
%
6.00
%
6.00
%
6.00
%
6.00
%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£46.
10m
£81.3
6m
£0.0
m £24.
65m
£24m
92,
383
72,
015
105,
235
93,
951
197,
101
80,0
00100,
000
150,
000
110,
000
93,5
00
6.00
%
6.00
%
6.00
%
6.00
%
6.00
%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£46.
10m
£81.3
6m
£0.0
m £24.
65m
£24m
92,
383
72,
015
105,
235
93,
951
197,
101
80,0
00100,
000
150,
000
110,
000
93,5
00
6.00
%
6.00
%
6.00
%
6.00
%
6.00
%
TAKE-UP* (sq ft)
Q1 2019 197,101
Q1 2019 vs 10 year quarterly average 164%
AVAILABILITY (sq ft)
Q1 2019 93,500
Q1 2019 vs 10 year quarterly average -69.82%
OCCUPIER HEADLINES
INVESTMENT HEADLINES
PRIME RENT (£ per sq ft)
PURCHASERS (last 12 months)
VENDORS (last 12 months)
DEVELOPMENT PIPELINE (sq ft)
OverseasUK Private
INVESTMENT VOLUMES (£)
Q1 2019 £24.65m
Rolling 12 Month Average £152.11m
PRIME YIELD (NIY)
Q1 2019 6.00%
Forecast 2019 6.00%
£25.00
Q1 2019 Year end 2019
£26.00• Following a steady 2018, Sheffield has seen a
strong start to the year with take-up reaching 197,101 sq ft in Q1 2019.
• Supporting this rise was the 140,000 sq ft deal that completed at Heart of the City, Phase 2 with HSBC. The newly built bespoke office is part of the £500m development. However, taking out this deal, Sheffield’s take-up is at c.57,000 sq ft, which is, 23% below the 10 year quarterly average and is more reflective of the current market.
• As a result of the HSBC deal, Finance and Banking accounted for the highest take-up in Q1 2019, 71%. The TMT sector saw the highest number of deals complete with 6.
• Prime rents currently stand at £25.00 per sq ft. Our forecasts predict an increase to £26.00 per sq ft by year-end.
• Investment volumes reached £24.65m in Q1 2019 underpinned by the sale of Riverside East, Millsands to Corum Asset Management. Brexit uncertainty continues to undermine market confidence, although once subsided should release significant amounts of latent demand.
• Domestic investment continues to dominate Sheffield’s office market accounting for eight out of ten deals completed and 66% of investment volumes in the last 12 months.
• Prime yields remain at 6% and are not expected to change.
66%
34% 43%
57%
66%
34% 43%
57%
Speculative
00
14,000
2019 2020 2021
Dates indicate the potential completion date of schemes under construction as at Q1 2019Development schemes are inclusive of both new and comprehensive refurbishment.
£
GROSVENOR HOUSE- HEART OF THE CITY 1ST FLOOR ACERO - SHEFFIELD DC RIVERSIDE EAST, MILLSANDS
SHEFFIELD OFFICE MARKET
ABERDEEN LEEDSGLASGOW BRISTOL EDINBURGH CARDIFFSHEFFIELD NEWCASTLEBIRMINGHAM MANCHESTER
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