Positive signs for South Yorkshire’s development market

BRITAIN’S economic recovery is spreading across the UK with encouraging signs for South Yorkshire’s commercial property development market, according to new data.

Lloyds TSB’s regional purchasing managers’ index (PMI) for July suggested the fastest-paced business growth in at least 12 years, while also showing that the country’s rebound is no longer confined to London, with growth in every region of the UK.

Yorkshire and Humber’s PMI showed strong increases in both activity and new business, and a rise in employment for the first time in five months.

Stephen Hodgson, regional commercial head at property consultancy Knight Frank, said: “This research is a welcome boost to South Yorkshire’s property and development market, but also represents its success in the past few months.

“Demand is now starting to outstrip supply in the area’s good quality small to medium sized industrial units market, whilst there is continued, steady demand for industrial units under 30,000 sq ft.

“Take-up in the Sheffield office market is more than a third higher for the equivalent period last year and all this is extremely encouraging as it shows that businesses are looking to expand and capitalise on the recent trends of growth.

“It is also hoped these promising signs will encourage investment into the infrastructure and commercial property development market, as its performance continues to improve.”

The office sector recorded capital value growth of 0.8% and a total return of 1.3% in July and in Sheffield the city centre’s 100,000 sq ft Fountain Precinct is still providing an attractive location for professional businesses and is now 97% let.

The industrial sector continued to perform well, with capital value growth of 0.6% and a total return of 1.2% over the month. A standout transaction in South Yorkshire this year includes NWS relocating to a 17,000 sq ft unit at Thorncliffe Distribution Centre after a deal brokered by Knight Frank on behalf of clients Geopost.