Later this year, Hammerson will submit a planning application for its 930,000 sq ft retail quarter in Sheffield (un-named as yet). Everyone who knows the retail scene in the city agrees that the development – to be anchored by a 250,000 sq ft John Lewis – will radically change shopping in the steel city.
And it needs change. The main retail streets run roughly north-east to south-west, from the prime street Fargate – anchored by Marks & Spencer – through Pinstone Street to secondary pitch The Moor. The distance from one end to the other is around 1.25 miles. It is narrow and long, and suffers because of it.
As a result, there is much speculation on the likely effect of Hammerson’s scheme. The proposed development will sit to the north-west, adjoining the pitch around Pinstone Street. But, like all retail schemes, progress is slow, with completion projected for 2012. So, what will happen in the meantime?
Supply in Fargate is tight. According to Paul Lancaster, director at regional agent Lane Walker, space fetches around £207 per sq ft for zone A and has the potential to go to £220 per sq ft over the next year.
Retailers want a Fargate store
King Sturge associate Jonathan Newns says: “The majority of retailers have requirements for the existing prime area of Fargate. However, owing to the lack of available space, the majority of retailers are unable to secure representation.”
The shape of shops in Fargate is also troublesome, says James Bruce, investment associate with Knight Frank. “The units are not properly configured. The layout of the streets is roughly triangular. This means units tend to be quite small, tapering from wide at the front to narrow at the back, which is a problem, as retailers want uniform boxes.”
Some developers are addressing this. At Carmel House on Fargate, Hermes is developing 41,000 sq ft of prime space behind a listed facade. It has prelet 26,000 sq ft to H&M as a flagship store, and another 2,100 sq ft to Footlocker. It also has units of 2,500-10,500 sq ft available, with completion due in summer next year.
At 11-15 Fargate, Morley Fund Management is looking to make some units larger when existing leases expire in 2008.
At the nearby Orchard Square shopping centre, London & Associated Properties plans to reconfigure and create more floorspace, and the council is considering plans for up to 10,000 sq ft of new retail space at office landmark Fountain Precinct.
But with supply so tight in Fargate, and Hammerson’s scheme a long way off, occupiers are looking elsewhere. According to Newns: “Some retailers are now considering The Moor, which has in the past been considered a secondary location.”
Indeed, The Moor could take advantage of the situation. Deutsche Bank proposes to carry out a phased redevelopment of the south and east of the area to create an indoor market, retail, leisure, offices and car parking. Some agents think that retailers unable to get into Fargate could opt for the revamped Moor.
“Deutsche Bank is looking to cash in on the wait for the Hammerson scheme and to build units tailored to suit occupants,” says Bruce.
With developers and agents awaiting the arrival of the giant Hammerson scheme, the coming few years will be interesting. Lane Walker’s Lancaster sums it up as a “very important 10-year period for Sheffield”.
While there will be shifts and changes that affect the present retail offer, all agree that the giant scheme will mean huge change. As Lancaster says: “The Hammerson scheme will give the city the necessary critical mass to substantially reduce leakage of consumer spending to other centres, and will give the city a natural retail heart and focus.”
