Liverpool office market sees strong Q3 performance

Liverpool’s office take-up levels in the third quarter rose above 100,000 sq ft for the first time since 2013, according to new data.

The latest Big Nine report from commercial property consultancy Bilfinger GVA showed that Liverpool’s office market saw strong Q3 activity, with take-up rising 48% above the five-year average.

Bilfinger GVA’s Liverpool director, Ian Steele, said: “Q3 take-up exceeded 100,000 sq ft which also included the three largest deals of the year so far.

“Despite a relatively slow first half of the year in terms of take-up, we are anticipating a strong last quarter given the number of deals currently going through legals which could see take-up exceed 100,000 sq ft for the second consecutive quarter.”

The three-month period saw NHS Liverpool CGC take space at The Department building, the first pre-let deal in excess of 30,000 sq ft since 2010.

Ian continued: “Occupier demand remains fairly strong but the biggest challenge the market is likely to face during the course of the next 12-18 months will be the lack of Grade A stock, given that there is less than 12 months of existing supply and very little speculatively refurbished and no new space due to be delivered into the market.”

Elsewhere in the UK, Q3 take-up was more restrained than earlier in the year, hitting a rolling year total of 6.9 million sq ft.

The national head of offices at Bilfinger GVA, senior director Carl Potter, commented: “The lack of speculative development, and hence Grade A stock, is beginning to lead to pre-let activity evidenced across a number of city centres.

Whilst the increased levels of activity have been previously more noticeable in the larger UK Core Cities, there is now evidence that the smaller Core Cities, such as Newcastle and Liverpool are also benefitting from increased take up levels.“