Liverpool office take-up shows signs of growth, with expectations high for 2025
Demand for office space in Liverpool city centre rose 12.5% in 2024, according to the latest annual report by the Liverpool Office Agents Forum (LOAF).
Last year, the total take up reached 318,500 sq ft, a significant increase from 283,000 sq ft in the previous year.
Underlying this upward movement is a rise in the total number of deals, and an increase in the average ‘deal size’ for each transaction.
The ‘flight to quality’ also continues, with landlords that have invested into improving the offer of their amenity and facilities seeing the most success, and occupiers moving towards the best quality space available.
Last year saw significant rental growth in the Grade ‘A’ assets, with incentives also tightening.
Headline rents sat at £29 psf for the best in class refurbished asset, in the absence of any new build Grade ‘A’ offices in the commercial district.
The largest deal of the year was Acorn Insurance’s purchase of Atlantic Pavilion in Royal Albert Dock, taking 45,985 sq ft for their own occupation.
Fellow insurance operator, Direct Line, also moved into 16,984 sq ft of space at 1 St Paul’s Square.
Other highlights in 2024 included a flourishing creative sector, with Wushu Studios and Sentric Music taking 13,220 sq ft and 13,000 sq ft, respectively, at Walker House in Exchange Flags.
Meanwhile, the Home Office took 24,700 sq ft at The Capital Building and there was also a strong showing from shipping and professional services, as Hapag Lloyd moved in to 8,850 sq ft and Mitchell Charlesworth 11,103 sq ft of workspace in The Plaza.
Serviced or managed office space continued to expand its presence in the city, with Bruntwood being the latest to expand its serviced space offering, occupying a further 5,400 sq ft at The Plaza.
LOAF expects rents to continue to strengthen for premium available spaces, but says the growth will be limited to refurbished opportunities, due to the lack of new supply entering the market.
New refurbishment schemes, such as Martin’s Bank Building, are currently at least 12 months away and there appears to be little movement on the commencement of the Pall Mall scheme.
Tim Garnett, chair of LOAF, said: “The underlying numbers demonstrate a robust commercial market within Liverpool’s central business district. Take up has increased from 2023 and the number of transactions taking place is arguably greater than before the pandemic.
“We are not without challenges in the marketplace, but fundamentals in Liverpool are strong. As a city we must be able to offer opportunities to large inward investors and employers, who are footloose across the regions. It is critical, therefore, that we see a push for improved supply, specifically in the heart of the commercial district.”
He added: “As a forum, we are predicting a positive 2025, with several large requirements due to land.
“However, this will not continue in the long term if schemes like Pall Mall do not come to fruition soon.
“Ready-to-occupy supply remains less than 500,000 sq ft and this is dispersed throughout the city and is of mixed quality.”
LOAF comprises Keppie Massie, Avison Young, B1RE, CBRE, Eddisons, Mason Owen, Mason and Partners, Worthington Owen, SK Real Estate, Hitchcock Wright, and Fisher German.
