Deals for office space in Liverpool City Centre during 2024 reflect a robust commercial market in the Central Business District, giving rise to optimism for 2025, according to a commercial property expert.
Transactions totalled 318,479 sq ft throughout 2024 which was a significant increase of 12.5% on the 283,799 sq ft of office space that was acquired the previous year.
The figures have been released by the Liverpool Office Agents Forum (LOAF), which is made up of commercial property agents across the city.
In Q4 of 2024, 21 deals were completed in Liverpool City Centre totalling 103,318 sq ft.
The largest acquisition of the year was in Q4, with the Acorn Group acquiring the Grade I Listed Atlantic Pavilion at the Royal Albert Dock, with a view to utilising 45,985 sq ft of office space for owner-occupation within the building.
Bolstering the numbers in Q4, Direct Line Insurance PLC acquired the fourth floor at 1 St Paul’s Square, amounting to 16,964 sq ft, while Your Legal secured 6,060 sq ft of offices at No 8 Princes Dock.
Adam Fleming, Surveyor at Fisher German who have an office in Tithebarn Street in Liverpool, and a member of LOAF, reflected positively on the 2024 figures. However, he warned that there is unlikely to be a large improvement in figures for 2025 unless premium office space developments come to fruition in Liverpool City Centre.
“Following a strong Q4 of 2024, we are expecting a number of deals in the pipeline in Q1 of 2025, which should boost market confidence as the financial year end approaches,” he said.
“However, within Liverpool City Centre the story remains the same, with a lack of high-quality office space expected to limit large-scale transactions throughout the year.
“We expect headline rents to continue to strengthen, however, until we begin to see new supply in the city, refurbishment schemes will continue to represent the highest quality space available.
“New build schemes such as Pall Mall have stalled, and until we begin to develop and build top quality developments as seen in Manchester, Birmingham and London, we are never going to realise the rental levels that these cities enjoy.
“There needs to be additional premium office space to entice national and international businesses as well as aid the growth of regional companies.
“The figures throughout 2024 were a marked improvement from 2023, with large deals underlining that there remains a demand in Liverpool City Centre for good quality space. Hopefully this trend will continue to translate into even more positive transactions.
“The Acorn Group’s acquisition is an exciting landmark deal, and a prime example of an expanding, locally based business securing a major site for owner-occupier use, which should act as a catalyst for the market.”
He said professional services along with the creative industries remained strong in terms of sectors attracted to Liverpool City Centre.
“The professional services sector continued to grow in 2024, and these types of businesses are seeking flagship accommodation for their staff,” Adam said.
“The creative sector continued to flourish in 2024, with notable deals including Wushu Studios Ltd acquiring 13,220 sq ft and Sentric Music Ltd taking 13,000 sq ft, both at Walker House. We hope to see the demand from this sector continue into 2025.
“Having office buildings with stylish interiors and strong ESG credentials are now top of occupier wish lists as more and more employees are starting to return to the office in a hybrid or flexible capacity.
“While hybrid and flexible working persists, the demand for modern high-quality offices is increasing as more employers want their staff to have the best quality working environment if they expect them to be in the office. This demand needs to be met in Liverpool City Centre.”
LOAF is made up of representatives from Fisher German, CBRE, Avison Young, Worthington Owen, Mason Owen, Keppie Massie, Mason Partners, Eddisons, Hitchcock Wright & Partners, LM6, SK Real Estate, and B1 Real Estate.
Caption: Adam Fleming, Surveyor at Fisher German in Liverpool