A “flurry” of deals in the second half of the year meant Liverpool’s city centre office market had a resilient 2023, property agents have reported.
Liverpool Office Agents Forum (LOAF) says office take-up in the city centre reached a total of 283,799 sq ft in 2023. The group says take-up doubled during the second half of the year as confidence returned to the market.
“Significant transactions” in the final quarter of the year included the letting of the 17,500 sq ft Federation House to The LIPA Multi Academy Trust, as two lettings in 5 St Paul’s Square - one of 9,452 sq ft) to , and another of 8,921 sq ft) to Driscoll Kingston.
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In 2021 that the wider Liverpool city region saw 412,000 sq ft of lettings in 2021, with 261,179 sq ft taken up in the city centre. The 2023 total was down just 2.5% on 2022's total of 291,368 sq ft.
LOAF’s members are Fisher German, CBRE, Avison Young, Worthington Owen, Mason Owen, Keppie Massie, Mason Partners, Eddisons, Hitchcock Wright & Partners, LM6 and B1 Real Estate.
Its 2024 chair, Gabriel Davies, of Fisher German, said: “The heart of Liverpool continues to flourish as a dynamic business hub, showcasing the city’s resilience in the face of a number of market challenges.
“The number of deals surged from 78 in 2022 to 88 in 2023 and the flight to quality has resulted in an increase in headline rents which continue to grow, exemplifying the continued momentum and interest in Liverpool's city centre office spaces.
“Landlords have had to undertake proactive asset management initiatives to attract tenants, offering better amenity space, higher quality offices and more services.
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“Creative and gaming sectors emerged as notable contributors to the city's office take-up in 2023, emphasising Liverpool's position as a dynamic and attractive destination for businesses in these fields, building upon a rich heritage in this sector dating back to the 1980s.
“Liverpool's city centre offices remain a vibrant and resilient choice for businesses seeking prime locations and dynamic environments, and as we move into 2024, continued success in the city’s office space sector is anticipated.”
Last month, Manchester Office Agents Forum (MOAF) said the city saw 946,230 sq ft of office space let across 221 transactions over the year, with a record rent of £43 per sq ft achieved when Pinsent Mason took space at 1 St Michaels.
Meanwhile CBRE and Avison Young have been appointed by Peel Waters to market 200,000 sq ft of office space at the landmark Liverpool Waters development. They will market opportunities at four existing buildings and pre-let opportunities at the planned 80,000 sq ft No. 5 Princes Dock.
The Liverpool Waters site stretches from Princes Dock to the site of the new Everton stadium to the north.
Andy Byrne, director, CBRE said: “We are delighted to be instructed by Peel Waters on this exciting development to market available office space. The Liverpool City region is attracting inward investment and international business with new restaurants, bars and nightlife alongside the iconic waterfront - this is a place where people want to live, work and play and Princes Dock is a world-class business destination and leisure complex in the heart of the city.”
Liza Marco, senior asset manager, Liverpool Waters, said: “Princes Dock is a thriving mixed-use neighbourhood with a great blend of local and international businesses. With our new flexible workspaces at ARRIVE adding to the Princes Dock commercial estate, we can now cater for the needs of everyone from micro businesses right up to the larger and more established organisations, such as KPMG. The appointment of CBRE will help cement our traditionally high occupancy levels and ensure the high calibre of our tenants continues long into the future.”