Commercial property viewpoint

Jun 11 2008 Liverpool Daily Post

by Carl Cross, Rensburg Sheppards

THE challenges of this year’s slowing economy have been augmented in the commercial property sector by new legislation affecting empty building rates and building energy performance.

New pressures are being placed on capital returns, while levels of risk are rising. Although this is compromising the appeal of commercial property investment in major cities across the UK, Liverpool is well poised to buck the trend.

The recent opening of Liverpool One and continued major investment in retail related schemes such as St John’s Centre and Central Village are creating new opportunities with local and national appeal.

The schemes cater for a widespread demographic, which spreads investment among local independents and national high street chains, and retail outlets ranging from clothing, food, entertainment and hardware to household goods. This diversity promotes competition and growth, which can be sustained in the long-term as Liverpool’s retail sector has suffered under-investment for many decades.

The staggered opening of the different centres will continue to create consumer pull from across Liverpool, Merseyside, the North West and in some cases, the UK. Ultimately, this will have a positive impact on rental and building values.

In turn, the city’s national and international investment appeal will be significantly strengthened by its winning bid to exhibit at the Shanghai World Expo in 2010.

Liverpool competed against more than 100 cities from around the world for a presence at the five-month exhibition, which will attract more than 60m visitors.

Professor Drummond Bone recently outlined how Shanghai will look to Liverpool for its expertise in a number of critical areas, including the retail sector.

Leading businesses will recognise this and are sure to increase their presence in the city as they strive to forge links with one of the world’s fastest growing economies.

These factors are driving Liverpool’s investment status, and will help the city realise its full potential.