Office space in Liverpool take-up 26% below 10-year average in 2010

King Sturge report fears no improvement in 2011

Article posted: 07 Mar 2011

Take-up of office space in Liverpool in 2010 was at its lowest level since 2002 according to King Sturge’s UK Office market report. At 26% below the 10-year average, there are also concerns that it will not improve in 2011.

It is estimated that there is 2m sq ft of vacant offices in Liverpool city centre, representing a 27.9% vacancy rate, slightly up on 2009 figures, with out-of-town availability also high at 750,000 sq ft.

Key deals in 2010 saw Liverpool Football Club take 28,500 sq ft at 20 Chapel Street (pictured), Lila take 13,563 sq ft at New Barratt House and US Airways sign up for 12,000 sq ft at The Plaza.

Prime headline rents fell by 10% in 2010 to £18 per sq ft in town while out-of-town rents varied from £9 to £13 per sq ft.

There were no prime investments traded in 2010 and King Sturge say its unlikely that there will be an upturn in investment activity until conditions are more favourable and the occupier market demonstrates further depth and resilience.

Commenting on the findings of the report, Chris Prescott of King Sturge Liverpool said: “Office demand was well below the long term average in 2010. 2011 is likely to be similar constrained by public spending cuts and a moratorium on government leases. However, the city has grown in diversity and demand is set to stabilise as professional and financial service occupiers return.”

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Posted by Janet