South Yorkshire

South Yorkshire encompasses three key markets. Sheffield and Rotherham, which are well positioned either side of the M1 (J34), and Doncaster which forks between the A1(M) and M18 and provides access to the east via the M180 and to the west via the M1. Doncaster has become an increasingly popular location with investors, who are keen to capitalise of the strategic location between two key national north-south routes and the ports of Grimsby, Hull and Immingham to the east, as well as connection to the East Coast Main Line. The proportionately high supply of land, attractive labour market and availability of new speculative kit is likely to continue to draw occupiers in and drive on rents in the region.

Several occupiers such as Home Bargains, DHL and Hermes agreed to large pre-lets or land purchases in 2020 and the region had an above average year for occupier activity. Developers were active too and several speculative schemes completed in the year in Doncaster, Sheffield and Barnsley. As a lot of the big-ticket occupier transactions were on a D&B basis, the completion of this speculative stock nudged up the availability rate to 9.7% at the end of 2020. Occupiers now have a greater and better-quality choice of accommodation in the region and there is land with planning at Markham Vale, Barnsley and Sheffield which is likely to prove attractive to occupiers. Our outlook for prime rental growth is for an above average 2% per year for the next 3 years.