Liverpool office take-up surges thanks to govt deal
A 52,000 sq ft letting to the government at the Capital Building made up the lion’s share of space transacted during the third quarter, the highest three-month total since 2022.
Overall, 146,000 sq ft of office space was transacted in Liverpool during July, August, and September, both in the city centre and out of town, according to Avison Young’s latest Big Nine report.
The amount of space let in Liverpool in Q3 was more than Q1 and Q2 combined.
The government’s deal at the 410,000 sq ft Capital Building on Old Hall Street saw it increase its presence within the L&G-owned block, which has been home to UK Visas & Immigration department since 2009.
Other notable deals during the period include Trident Gym’s 20,000 sq ft letting at Urban Splash’s Matchbox in Speke and Scottish Power Manweb’s 5,500 sq ft deal at No 4 St Paul’s Square.
Despite an uptick in deals, Liverpool continues to suffer from a severe lack of new stock, which is suppressing headline rents.
New-build office development in the city centre has ground to a halt and, despite positive noises around Pall Mall over recent months, is still a way off returning.
Stephen Cowperthwaite, principal and managing director for the UK Regions and Liverpool at Avison Young, said: “Liverpool’s largest deal in three years at the Capital Building is welcome news, with the government committing to significant additional space.
The underlying issue of a lack of quality stock, resulting in prime vacancy at record lows, means that 2026’s focus must be on delivery of new Grade A space to support the ambitious Growth Plan for the region and capitalising on the city’s strengths to attract new occupiers.”
Councillor Nick Small who is in charge of economic growth opposed Pall Mall for years. Electing serious people who understand how big cities work would make Liverpool so much better. Unfortunately we are stuck with people who couldn’t run a bath.
By Liverpool needs ambition
Crazy as the city centre has multiple vacant sites/carparks which should be grade A office space already, Moorfields, Pall Mall, Old Hall Street, Covent Garden, Strand, Tithebarn Street, etc. No plans in place and no big city thinking or strategies to fix it.
By GetItBuilt!
More relocations of civil service jobs from London would help a lot, but as has been pointed out for years we need new, high grade, offices to be built, such as the Government is doing in Manchester. We have land in the city centre which has been vacant for 20 or 30 years, such as the NCP car park on Tithebarn St, Pall Mall of course, then Moorfields, Princes Dock, plus the ex Police Headquarters near the L1 bus station which the Police Commissioner put up for sale.
You actually wonder if anyone is marketing these sites properly.
By Anonymous
Opposite Moorfields station is a disgrace. It should be thriving with business as it’s in a great location. I try to avoid politics but Labour has been a disaster for Liverpool.
By Frank
Its not that crazy when you consider offices in Liverpool would cost about 50% more to build then they are worth. Serious government viability funding needed if these are to happen, its not just about “plans”
By Fiability
The government offices in Manchester are a failure… Not big enough, not enough desks and the plumbing breaks down.. unpleasant to work in.. despite being new.. Liverpool could be a better option if they created the right spaces.. not behemoths with no surrounding leisure
By Anonymous
LCC and their friends at the Combined Authority need to stop their posturing and actually bring tangible office schemes to fruition, focused on the Central Business District not the out reaches of the city centre in the Knowledge Quarter.
By Anonymous
On the one hand we have a metro mayor chasing the illusory tidal barrage, whilst he’s nowhere to be seen when it comes to intervening in areas that we know can deliver immediate and lasting economic impact.
For so long as politics in Liverpool is led by well-meaning people with limited experience of business and economics, the city shall forever bounce around the margins. Next week’s planning committee is going to be very interesting…
By Anonymous
We have a business district with underground stations both on the Northern Line and Wirral Line able to transport people into work from the extremities of the City Region and beyond, why no one is investing in offices there is a mystery.
By Anonymous
The lack of investment in new offices is no mystery. The enigma to the political rationale has been staring people in the face for 5 decades on TV
By Arsenal Hazard
It’s pretty telling that offices are basically dead without some kind of government subsidy. Place North West and their YIMBY pals need to put the Lego down and join the modern world.
By Anonymous