Liverpool

Demand in the Liverpool office market remains active at the very small end of the market, but we do not expect it to pick up for the majority of medium to large size occupiers until at least the second half of 2021. Take-up for 2020 was very subdued, amounting to 130,000 sq ft in the city centre, which is the worst on record and 75,000 sq ft out-of-town, 60% below the ten-year average.

However, there are a number of active requirements in the market and plenty of viewing activity, but the current uncertainty means decisions are being delayed and occupiers are not relocating or committing to new space. With an ongoing review of future occupational requirements, many of the larger occupiers are looking to reduce their footprints by 40% to 50%.

Consequently, we are likely to see an increase in the amount of “grey space” coming to the market over the next 12 months. Some of this will compete with existing grade A & B refurbished supply. We expect new grade A to be in the form of refurbishments and landlord-led flexible space as occupiers identify less but better-quality space.

The next phase of office developments such as Pall Mall and Liverpool Waters are likely to require significant long lease pre-let commitments before starting on-site. However, across the river on the Wirral, there are currently two grade A speculative schemes under construction, which are the first on Merseyside since 2011. Hythe at Wirral Waters (25,000 sq ft) is being developed by Peel and will be completed later this year and Building A2 in Birkenhead Town Centre (58,000 sq ft) is scheduled for completion in mid-2022.

TAKE UP Q4

City Centre

50,000 sq ft

Out of Town

25,000 sq ft

HEADLINE RENT

City Centre

£22 per sq ft

Out of Town

£14 per sq ft

UNDER CONSTRUCTION

Total

160,000 sq ft

Prelet

44%

PRIME YIELD

Q4 2020

6%

TOP RECENT DEALS

KEY SECTOR ACTIVITY 2020

Legal services

32%

Banks & building societies

30%

Central government

21%


TAKE-UP

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