Central Liverpool office market secured record take-up levels in 2009
Research carried out by Liverpool Vision and Professional Liverpool, which was published in a report known as the Liverpool Commercial Office Market Review 2009, shows that the level of office take-up in the city centre reached a record level of almost 520,000 sq ft last year.
Total office space for the city as a whole (721,189 sq ft) was above 2008’s level of 542,997 sq ft, signalling a more positive market. But this figure was still below the 2007 peak of 846,195 sq ft. Furthermore, take-up of Liverpool office space outside of the city centre dropped by 33%.
City centre levels were boosted by two large deals. The first was by the UK Border Agency, part of the Home Office, that signed a 15-year lease for 220,000 sq ft, and the second was Merseytravel, that agreed 140,000 sq ft of space on a 30-year lease.
Aside from these deals, the report shows that just three city centre deals above 10,000 sq ft were confirmed, which somewhat tarnishes the initially positive picture. The study claims that availability of Grade A city centre office space is also down on previous years, dropping by approximately 20%.
According to the Liverpool Daily Post, chief executive of Liverpool Vision Jim Gill said:
“Liverpool is still well positioned to resume its growth once the global economic situation recovers, but the private sector is yet to return fully to the market, reflecting the continuing impact of the world financial crisis on occupier confidence.”
He also added that the figures represent a “very good performance in the face of challenging economic conditions”.