17% increase in Liverpool's lettings in 2007

Feb 26 2008

AROUND 470,000 sq ft of office space was let in Liverpool’s central business district during 2007 – an increase of 17% on 2006 – according to a report out today.

Liverpool’s prime office rental has also risen to £22 per sq ft and the report – by property agents Knight Frank – is forecasting this will hit £23 per sq ft by the end of the year.

The study also claims up to 7,000 new jobs could be created in Liver- pool’s financial and business ser- vices sector in the next five years.

The 470,000 sq ft figure is an improvement on the 405,284 figure from 2006 but still short of 2005 when a record 498,000 sq ft was let. However, that figure was boosted by the 130,000 sq ft letting to law firm Hill Dickinson at St Paul’s Square.

Knight Frank’s Spring 2008 Liverpool Market Activity Report, launched at a breakfast event this morning, claims the banking and finance sectors were driving “healthy” demand for office space in the city, with a strong start to 2008 and no sign of the credit crunch having a major impact on the market.

The biggest letting of 2007 was 70,000 sq ft to the Ministry of Defence at Exchange Flags but the report insists that, this transac- tion aside, the growth was under- pinned by mainly private sector lettings.

The report states: “Unlike in previous years, take-up has not been driven by Government acquisitions.

“Rather, it has been under- pinned by the banking and fin- ance sector, with stockbrokers and investment managers both mov- ing into and around the city, and banks moving administration functions to higher quality space.”

Examples cited include Deloitte taking 6,230 sq ft at Horton House, the Bank of Ireland acquiring 6,400 sq ft at Chapel Street and HBOS signing up for approximately 11,430 sq ft at St Paul’s Square last month.

The report’s author Claire Higgins, the firm’s head of commercial research, also cited research from business information firm Experian saying that Liverpool could see the creation of up to 7,000 new jobs in financial services and banking over the next five years.

She said: “Financial and Bus- iness Services will see continued growth, with nearly 7,000 new jobs forecast to be created in the next five years.

“The banking and insurance sub-sector is expected to experience one of the fastest rates of employment growth, of 11.4%, in the same period.

“Although, looking for- ward, there are concerns relating to the impact of the difficulties being more recently experienced by the financial markets and the possibility of an economic slowdown, this has not yet been reflected by the occupational mar- ket, which has followed a healthy 2007 with a strong start to this year.”