LOAF: Liverpool office take-up on the rise
Deals for 318,500 sq ft were completed in 2024, up 12.5% on the 283,000 sq ft transacted in 2023, said the Liverpool Office Agents Forum.
LOAF said that not only was the total number of deals higher, but the average space taken rose as well.
The forum said that the oft-noted ‘flight to quality’ also continues, with landlords that have invested in improving facilities seeing the most success.
Rental growth was also recorded, with 2024 seeing incentives tighten for grade A stock. Headline rents sat at £29/sq ft for best-in-class refurbished assets, in the absence of any new build grade A offices in the Commercial District.
The largest deal of the year was Acorn Insurance taking 45,985 sq ft at Atlantic Pavilion in the Royal Albert Dock as an owner-occupier, the firm having purchased the whole 80,000 sq ft building. Fellow insurance operator Direct Line also moved into 16,984 sq ft of space at 1 St Paul’s Square.
Other highlights in 2024 came from the creative sector, with Wushu Studios and Sentric Music taking 13,220 sq ft and 13,000 sq ft respectively at Walker House.
Meanwhile, the Home Office took 24,700 sq ft at The Capital Building and there were also deals from traditionally strong players in shipping and professional services, as Hapag Lloyd moved in to 8,850 sq ft and Mitchell Charlesworth 11,103 sq ft of workspace at The Plaza.
Serviced or managed office space continued to expand its presence in the city, with Bruntwood being the latest to expand its serviced space offering, turning over a further 5,400 sq ft at The Plaza.
LOAF expects rents to continue to strengthen for premium available spaces, but said the growth will be limited to refurbished opportunities, due to the lack of new supply. Refurbishment schemes such as Martin’s Bank Building, now under the stewardship of Karrev, are currently at least 12 months away and long-awaited new-builds such as Pall Mall are still to make progress.
Tim Garnett, chair of LOAF, said: “The underlying numbers demonstrate a robust commercial market within Liverpool’s central business district. Take-up has increased from 2023 and the number of transactions taking place is arguably greater than before the pandemic.
“We are not without challenges in the marketplace, but fundamentals in Liverpool are strong. As a city we must be able to offer opportunities to large inward investors and employers, who are footloose across the regions. It is critical therefore that we see a push for improved supply, specifically in the heart of the Commercial District.
“As a forum, we are predicting a positive 2025, with several large requirements due to land. However, this will not continue in the long term if schemes like Pall Mall do not come to fruition soon. Ready-to-occupy supply remains less than 500,000 sq ft and this is dispersed throughout the city and is of mixed quality.”
LOAF is comprised of Keppie Massie, Avison Young, B1RE, CBRE, Eddisons, Mason Owen, Mason and Partners, Worthington Owen, SK Real Estate, Hitchcock Wright, and Fisher German.
