Adam Fleming, surveyor in Fisher German’s Liverpool office, believes Liverpool’s office market has momentum behind it but warns that unlocking its full potential will depend on delivering more Grade A office space.
Liverpool’s office market finished 2025 in a strong position in comparison to the first six months of the year. The Q4 2025 figures from the Liverpool Office Agency Forum show that take-up in the second half of the year was double that in the first, albeit this was largely due to the 52,000 sq ft deal at the Capital Building in Q3.
We saw a couple of deals not quite manage to complete before the end of the year feeding into the first quarter of 2026, so hopefully this will start the year on a positive note.
Liverpool certainly has that demand for occupiers upgrading their workspace, and many within the industry will be familiar with the requirements circulating on the market that cannot at present be catered for. In conversations with occupiers, it is clear that many businesses want modern, high quality office space that reflects the way people now work.
They want buildings with strong ESG credentials, efficient layouts and a working environment that helps attract and retain staff. The challenge is that the supply of this type of space in Liverpool remains limited.
At present, landlords are relying on refurbishing older office buildings to bring them closer to Grade A specification. Many of these schemes are delivering impressive results, creating high quality environments from existing stock and landlords are getting their reward from their capex outlay, attracting tenants and seeing void rates reduced in their buildings.
However, there is a natural ceiling to what refurbishment can achieve. Even the best upgrades cannot always replicate the specification, flexibility and environmental performance of purpose-built Grade A offices. This is where Liverpool’s market faces its biggest barrier to growth.
Rental levels illustrate the point clearly. Prime office rents in Liverpool currently top out at around £29.50 per square foot. There is a desire for 2026 to break the £30.00 per square foot mark, and whilst this is a positive step forward, this illustrates the gap between Liverpool and regional competitors like Manchester and Birmingham, where they are seeing headline rents of Grade A space in the region of £45 to £50 per square foot.
Developers require rents at this level to justify bringing forward large scale new office schemes. Without them, the financial viability of development becomes far more difficult to achieve. As a result, Liverpool has found itself in a situation where demand for top quality space exists, but the pipeline of new buildings struggles to keep pace.
There are projects on the horizon that could begin to address this challenge. The long-awaited Pall Mall development is one of the most talked about examples and has the potential to deliver the type of Grade A office space the city needs, when it eventually gets off the ground. Schemes like this could play a transformative role in reshaping Liverpool’s commercial landscape.
In my view, joint venture partnership approaches between public and private sectors will continue to be crucial if Liverpool is to realise its full commercial potential.
The city has many advantages. It has a strong talent pool, three universities, a growing reputation as a business destination and a city centre that continues to evolve. But without the right office stock, it becomes harder to attract the larger occupiers who can drive the next stage of growth.
Encouragingly, the appetite from occupiers is clearly there. Businesses are willing to commit to high quality space when it becomes available, and the speed at which refurbished offices are let demonstrates that demand beyond doubt.
The next step is ensuring that supply can match that appetite. Delivering more Grade A developments will not only support existing businesses but also position Liverpool to compete more confidently with other regional centres.
For me, the outlook for Liverpool’s office market is therefore one of cautious optimism. The fundamentals are strong; activity levels remain encouraging and the city has significant long-term potential.
If Liverpool is to move to the next level, the delivery of new Grade A office space will be critical. With the right projects and continued collaboration between developers and the public sector, there is every reason to believe the city can unlock that potential.