Office market picking up outside city centre

Mar 26 2008 by Alex Turner, Liverpool Daily Post

NEARLY half of the office space taken in Liverpool last year was away from the city centre, according to a report by Liverpool Vision and Merseyside Property Forum.

It was the first time the annual report had looked at the lettings and sales of office space in Liverpool’s midtown and out-of-town markets.

The report claims that Liverpool midtown, the area from the Ropewalks through the university “knowledge corridor” to Wavertree Technology Park, caters mainly for firms in the cultural industries and small-scale public sector occupiers, although the private sector still took nearly three-quarters of the 96,975 sq ft let or sold in 2007.

Office take-up in the Liverpool out-of-town market, defined to take in South Liverpool, Knowsley and Sefton, was 286,345 sq ft last year and was also dominated by creative, media and IT companies.

Stuart Keppie, chairman of The Merseyside Property Forum said: “The improvement in Liverpool’s central business district appears to be reflected in the midtown and out-of-town market analysis, where there has been a healthy level of take up in 2007, following an expansion in office supply, particularly for new business park space.

“The creative/media industries have been particularly active in these markets, accounting for take-up of 113,000 sq. ft. This coincides with the impact of Liverpool’s European Capital of Culture status.”

Take-up in the city centre increased 14% to 846,195 sq ft and the report highlighted the financial services sector as an increasingly important driver of the city centre office market. The sector has increased its take-up by 40% since 2005 which last year was 70,000 sq ft, boosted by HBOS and Allied Irish Bank moving in at St Paul’s Square.

Liverpool Vision chief executive Jim Gill said: “The figures for take-up in 2007 show the continued strength of the commercial office market in the city and the strong shift in demand for quality office space, whether new or refurbished.

“The current year is likely to see more difficult market conditions but we are already seeing a healthy level of deals in the first quarter, and the Liverpool market is in good shape to make further progress.”

alex.turner