City centre office lettings look set for a record year

Aug 22 2007 by Tony McDonough, Liverpool Daily Post

LIVERPOOL’S city centre office market could be heading for a record year for lettings, according to property agents DTZ.

Its study shows that around 400,000 sq ft of space is already let or under offer so far in 2007, just 5,000 sq ft short of the figure for the whole of 2006.

DTZ believes that if the present rate of take-up continues for the final few months of the year then Liverpool’s record of 498,000 sq ft, set in 2005, could be broken.

The figure that year was boosted by law firm Hill Dickinson which agreed to take 130,000 sq ft at the St Paul’s Square development.

DTZ associate director Chris Lloyd said: “This extremely significant for the Liverpool office market as it validates the decision by Liverpool’s leading developers and landlords to speculatively develop new buildings and undertake high quality refurbishment.

“The take-up levels also buck the trends in other regional cities where take-up figures are generally down.”

Major lettings so far this year include Royal Bank of Scotland’s corporate team, which is moving from its current base in Dale Street, to 21,000 sq ft of refurbished offices at the Plaza in Old Hall Street.

UK Land and Property and its development partner Pochin has also agreed a pre-let with the Ministry of Defence for 70,000 sq ft of office space in its newly acquired Walker House, part of the Exchange Flags complex.

Around 600 MoD financial management staff will move to the building in late 2008 from nearby Mersey House.

Mr Lloyd added: “What is more exciting is that this is happening before next year’s Capital of Culture which will further enhance the city’s profile. Occupiers who have taken space this year include a significant number from outside the city, which can only add to the vibrancy of Liverpool.”

tonymcdonough