Liverpool plots strategy for underperforming Spine
Despite achieving a WELL Platinum rating, the Liverpool office block still has six floors empty more than two years after it opened.
The Spine sits within Liverpool’s Knowledge Quarter and includes the Royal College of Physicians as an anchor tenant. RCP is leasing seven floors, while Clatterbridge Cancer Hospital has taken one.
That leaves six of the building’s 14 storeys available, which roughly equates to 70,000 sq ft. These are ‘shell’ floors and devoid of any fittings.
Despite receiving “lots of enquires” since The Spine opened in 2021, a city council report states that joint agents CBRE and Knight Frank have been unsuccessful in securing a tenant for these floors.
A city council cabinet report outlines a few strategies for turning things around at The Spine, with a goal to have two of the six floors occupied by October 2024, another two by March 2025, and the final two by October 2025.
To help boost The Spine’s appeal, the city council is seeking to spend £2.9m to fit-out up to three of the empty floors – a move that it hopes will attract tenants who are looking for a more desk-ready space. Part of the fit-out plans could also include dividing half of one of the floors into smaller suites.
Not having available fitted-out floors has already cost The Spine some future lettings, according to the report.
“Some recent specific enquiries for The Spine have halted or not progressed, either due to the complexity of the tenant having to undertake a full fit-out and the timescales required, or simply because they wanted smaller, more desk-ready space,” the report reads.
Should a company enquire about space and not want one that has been fitted out, the council would offer it at an initial rate that is below market rent.
If the cabinet approves this plan, the city council would seek to award a fit-out contract this autumn, with work to complete by March 2024.
Another option pitched to the cabinet includes increasing Sciontec’s flex workspace offering at The Spine. The company currently has two floors of serviced workspace at The Spine.
Should councillors be less inclined to undertake any of these strategies, the report offers a warning.
“To do nothing is not an option,” it reads. “Maintaining the current approach and marketing remaining floors as single open plan floorplates in a shell condition will not accelerate lettings in The Spine.”
Things don’t happen over night it will eventually fill , Liverpool has a lot of catching up to do with the rest of the world
By Anonymous
One or two solid looking letting proposals fell through which is frustrating, but something needs to be done about accessing this location. A train station was promised but would`ve taken years, however the best bet for me is a proper tram from Edge Hill station via Paddington Village and the hospitals and ending at Lime Street, that would be a first phase and they can think about any extensions later.
By Anonymous
Let’s hope so?
By Liverpool4Progress
Tough times everywhere for big office buildings for obvious reasons even the biggest players like London and Manchester are feeling the draft . Things change though .
By Anonymous
Yet such a delightful building.
By Liverpool romance
For once the council and its officers seem to be talking sense. Maybe they’re finally entering the real world?
By Roy
Horrid looking thing, no wonder nobody wants to work in it.
By Anonymous
Basically, its a successful building, but the short-sighted past council regime didn’t do what you’d normally do and bother to fit it out!
By WELL Platinum
They’re building new council offices in Birkenhead, whilst the existing ones are lying empty due to the staff”working from home”
By Crafty
LCC’s lack of business acumen is very evident in how they address issues in the city. They seem completely lost or opposed to the commercial sector.
I wonder what Colin Sinclair and Bruntwood’s views are on this?
By Liverpolitis
I think this is a worthy project and feel it will come good, it hasn’t been helped by Covid and the general incompetence of the Council. However there are doubts that the whole scheme will complete as envisaged. This is just one of a list of big projects that the council bigged up but they may, or may not, appear, ie Cruise Terminal, Littlewoods Studio, Garden Festival site etc I reckon in some other cities these would all be completed by now, but this is Liverpool.
By Anonymous
Birkenhead will have more office jobs in 5 years then Liiverpooo
By Anonymous
Office working has moved on. The need for these big buildings and large fitted out offices will be a thing of the past. Rent a desk would probably make more sense in this decade
By Anonymous
The area is like a in terms of public transport… it’s obviously the issue LCC!
Joe Andersen was proposing using a cutting for a new train station. Metro Mayor Rotherham talking about a trackless tram from Lime Street & Central. Lots of proposals and then… silence!
How can you have a serious centre for business with no train station or light rail? It’s has to be well connected to work and then expand.
Let’s just hope the Baltic Station starts as promised, with a planning application this year or we really will be struggling for serious investment.
By MJ Liverpool
Perhaps if it had been a mass timber building like it was originally intended, it would have been a more appealing building to be associated with as it would have been one of the tallest timber buildings in the world instead of just another steel and concrete block.
By Anonymous
Nice building but a fringe office location in a Liverpool office market that has very thin demand
By Real Deal