Commercial Office Space Take-up in Liverpool Drops 60%
The commercial office market in Liverpool has seen a 60% reduction in the level of office space take-up recorded in 2010, with the 2009 level of 500,000 sq. ft. reducing to just 200,000 sq. ft. in 2010 according to property agents CB Richard Ellis.
Despite the extreme shift in office space take-up however, a representative of the firms Liverpool office stressed that the numbers did not tell the whole story, with several large-scale lettings in 2009 skewing the results and delivering an unfair representation of the overall levels seen in 2010.
ΓÇ£We expect that take-up in Liverpool City Centre will total about 200,000 sq. ft. for the year, which looks very poor by comparison to 2009 when over 500,000 sq. ft. was let.ΓÇ¥ explained Mark Worthington to the Liverpool Daily Post.
ΓÇ£ItΓÇÖs important to remember, however, that 2009 was dominated by two significant lettings to the UK Border Agency and Merseytravel so the underlying market, excluding these deals, was actually poorer in 2009 than 2010.ΓÇ¥
While the property specialists expect 2011 to be another difficult year for LiverpoolΓÇÖs office market, the firm do expect take-up in 2011 to be at least as strong as 2010 ΓÇô with several occupiers reportedly looking to secure new office space in the coming 12 months.
ΓÇ£The great hope, of course, is that we will be able to attract further inward investmentΓÇ¥ continues Worthington, ΓÇ£and I do feel that Liverpool is well-placed to secure major relocations, building on this yearΓÇÖs successes with organisations such as Servicesource coming to the city.ΓÇ¥
ΓÇ£The overall offer in terms of the physical fabric of the city, property costs and skilled labour pool make Liverpool an attractive proposition.ΓÇ¥
But as fellow agent Simon Reynolds of GVA Grimley explains, the Liverpool and Manchester office markets will be in a strong position to attract businesses attracted to the North West:
ΓÇ£With Merseyside and Manchester forging ahead with JESSICA funding and other sub-regional areas such as Lancashire not having LEP status, we will start to see the main urban centres place clear water between them and the regionΓÇÖs smaller centres.ΓÇ¥
ΓÇ£Both Liverpool and Manchester will have the only new office schemes committed or available, which will continue to attract new business. The populating of a completed MediaCity will make a major difference to Salford Quays and its environs.ΓÇ¥