Shortage of office space ‘stifling city region’s economy’
PLUMMETING levels of high quality office space in Liverpool city centre are stifling the regional economy.
This is according to the MP for Liverpool Wavertree and Metro Mayoral contender Luciana Berger.
Referring to figures which show that Liverpool’s economy has shrunk in recent years compared to other cites, Berger has warned that the shortage of Grade A stock in Liverpool, with less than one year’s supply and the lack of new developments in the pipeline, is closing the door to businesses looking to invest and create new jobs in the city.
Berger’s comments follow the recent publication of the City Region Growth Strategy and reflect her conversations with key property and business leaders.
She said: “Liverpool city centre is an economic driver for the whole city region. It’s a source of employment and prosperity for people from every one of the six boroughs and beyond.
“It’s incredible that we have reached a point where there is no new Grade A Office accommodation in the pipeline, and we have nothing on the horizon with which to attract new business or major civil service relocations.”
According to the Liverpool Market Review in 2015, the amount of highest quality office space has fallen by almost a quarter (23%) from 2014 and is much lower than in 2011.
Grade A office space now represents just 5.8% of available office stock in 2015, compared to 13% in 2011.
Berger has argued that the figures highlight the continuing lack of new build activity in Liverpool office market and an increasing number of buildings being converted from office space to hotels and serviced apartments. She said: “Investment into our region is to be welcomed, but if we are looking to build a modern high skill and high value economy we need to be nurturing the right kind and quality of investment.
“The city centre has to be more than a leisure destination and an arena for speculative residential and student accommodation.
“Our signature developments should be the Grade A offices, laboratories, digital hubs and incubators that are going to provide the jobs that a thriving and competitive City Region desperately needs.”
Liverpool has been far behind Manchester in terms of investment volumes over the past five years. Investment volumes in Liverpool offices in Q1 2016 were £37m, compared to £269.6m in Manchester.
