Liverpool office market dominated by smaller deals in 2015

Overall office take-up levels across the Liverpool City Region (LCR) have remained on an upward trend for the second year running, according to new data.

Research from member agents of Professional Liverpool’s Property Group, with the support of the Liverpool BID Company, has found that office take-up in the LCR hit 576,847 sq ft last year, an increase of 2.4% against 2014.

Now in its 11th year, the annual Commercial Office Market Review also showed that smaller lettings dominated the market within Liverpool’s commercial district, with a record 156 deals in 2015 compared to 121 the year previous.

However, despite the higher number of deals completed, overall take-up across the district fell by 21% to 301,956 sq ft.

Professional services firms led the way for securing space in Liverpool’s business district, accounting for 33% of the total, while enterprises in the creative, IT and media sectors made up 15% of the overall figure.

Elsewhere, out-of-town office take-up leapt year on year by 73% at 193,824 sq ft, with some of the biggest deals including 22,140 sq ft at Liverpool Innovation Park and 22,900 sq ft at Vortex House, an office building in Wavertree Technology Park.

Discussing the findings, the chairman of Professional Liverpool’s Property Group, Tony Reed, said: “The statistics are extremely encouraging with a 2.4% rise in overall take up across the region, reflecting that the market has continued to benefit from the economic upturn.

“While the growth of the creative/IT/media sectors helps to cement Liverpool’s reputation as a truly entrepreneurial city.”

Tony continued: “But there are still challenges as we see a continued lack of Grade A office stock across the Liverpool City Region. With no new Grade A space in planning, with the exception of Peel Ports’ Liverpool Waters scheme, this is set to continue.”

Bill Addy, the chief executive of Liverpool BID Company, called the Liverpool city centre office market “vibrant” and said he believes the new data is indicative of a “health demand” for space.

He said: “The number of startup businesses is an encouraging underlying trend with the rise of the digital and creative sector in the commercial district a highly positive sign of the confidence in the city.

“The BID Company is focused on nurturing and developing these trends over the next five years, but this report is clear; Grade A supply needs to improve and as a city we must strive to stimulate the market – especially by investing in our transport and digital infrastructure.’’