Market overview from Knight Frank

John Brown, partner in Knight Frank Liverpool... If stability is what you're looking for in a challenging market, look no further than Knowsley. It remains the most consistent and resilient sub region within Merseyside's out-of-town office market with a negligible fall in overall take up in the past year from 57,000 sq ft to 56,900 sq ft compared to 2008.

Rents remained relatively buoyant with headline rents for grade A office accommodation remaining at £14.00/sq ft but poorer quality offices rent have dropped to levels of around £8.00/sq ft. However, incentives were also heavily weighted towards the tenants and there were only a few freehold transactions.

The future for Knowsley in terms of the office market is difficult to predict but it is likely that the call for high quality offices will remain a driver for the local market, but these will soon become limited as supply will dwindle over the course of the next 18 months or so. This will also provide landlords with the ability to draw in incentives and will overall have an upward effect on rents. In addition, as banks over the course of the next couple of years start to provide reinvestment and funding back into the market, the need for freehold/long leasehold options will once again grow and this will need to be catered for.

Pressure from funding and the previous difficult two years when new development has ceased will lead to demand increasing over a period of time and then a lack of supply. This will draw in incentives available and maintain or increase headline rents again to a point that speculative development is once again achievable, although, pre-lets or sales will still be paramount in the current market.

Quality of stock and transport links will be a driver to maintain the area's competitiveness and maximise the potential of the area going forwards into the future.

Once again, marketing of the area, particularly by the local council, will be important to generate further interest and to highlight the availability within the area but also the quality in terms of accommodation, labour force, transport links and any financial assistance, if appropriate.

Knowsley must again maintain its non-reliance on any one business sector in the market place to continue the future prosperity of the region and a plan action must be in place in this regard.