Liverpool Needs More Grade A Office Space
But as one of the leading figures behind this successful office development explains, the expected shortage in Grade A office space within the city could seriously impact upon its ability to attract further blue-chip clients.
Interviewed in the Liverpool Post, Mike Stares, Director of Rumford Investments who own the 20 Chapel Street office building, stated that the creation of more Grade A office space would be essential if the city wished to continue attracting occupiers from outside of the immediate area.
Echoing Mr Stares views, Neil Kirkham of commercial agency Hitchcock Wright & Partners added:
ΓÇ£It has been a tough couple of years for the city, but I think we are now finding a level. I think we have seen rental levels creep back up and a hardening in the incentives on offerΓÇ¥
ΓÇ£In terms of Grade A, if you took a snapshot today then you might say we had enough but going forward, it is not going to be enough.ΓÇ¥
ΓÇ£We need more new-build, but until rental levels get back up then it is not going to stack up.ΓÇ¥
But with 20 Chapel Street already over two-thirds full and limited new development taking place in the city, could Liverpool find itself missing out on corporate occupiers sooner rather than later?
Because while Liverpool may be facing an up-coming shortage in office space supply, the likes of neighboring Manchester and Salford Quays have seen and influx of new office stock in the last 18 months ΓÇô potentially placing them in pole position to cement the M postcode as the corporate centre of the UKΓÇÖs North West.
The Serviced Office Perspective
While both workstation prices* and the overall number of businesses entering serviced offices** across the L postcode fell during 2010 compare to 2009, enquiry levels (+15%) and workstation requirements increased***
If you would like to learn more about the serviced office market in the North West, you can view and download a copy of the Serviced Office Review: North West 2010 directly from the Stats & Facts section of the officebroker.com website.
April will also see the launch of City Focus, a series of reports that uses the extensive data available from officebroker.com, the UKΓÇÖs largest independent broker to the serviced office space market, to provide a detailed and trusted insight into the core City Centre markets of key UK Cities ΓÇô including Liverpool.
*Workstation prices decreased from an average of ┬ú217.00 per workstation in 2009 to ┬ú189.00 per workstation during 2010. (Source: officebroker.com – L Postcode data 2009 vs. 2010)
**officebroker.com recorded a 50% decrease in the number of newly placed serviced office tenants entering serviced offices across the L postcode in 2010 compared to 2009. (Source: officebroker.com – L Postcode data 2009 vs. 2010)
***Workstation requirements rose from an average of 3.6 workstations in 2009 to 4.6 workstations by the close of 2010. (Source: officebroker.com – L Postcode data 2009 vs. 2010)