Commercial-Office-Market-Review-2016

LIVERPOOL CITY REGION
COMMERCIAL OFFICE
MARKET
REVIEW
2016

2
WATERLOO
BOOTLE
OUT OF TOWN
NORTH LIVERPOOL
M58
M6
CITY
FRINGE
OUT OF TOWN
KNOWSLEY
OUT OF TOWN
ST HELENS
COMMERCIAL
DISTRICT
M57
RIVER MERSEY
OUT OF TOWN
WAVERTREE
M62
OUT OF TOWN
SOUTH LIVERPOOL
AT A
GLANCE
OVERALL OFFICE TAKE-UP FOR THE LIVERPOOL
CITY REGION WAS 523,456 SQ FT IN 2016, A 9.3%
FALL ON THE 2015 FIGURE OF 576,847 SQ FT.
THE OVERALL TAKE-UP IN THE CITY CENTRE
(COMMERCIAL DISTRICT AND CITY FRINGE)
ACCOUNTED FOR 386,981 SQ FT, WHICH IS UP 1%
WHEN COMPARED TO 2015.
TOTAL OFFICE TAKE-UP IN THE COMMERCIAL
DISTRICT IN 2016 WAS 342,714 SQ FT, WHICH IS
UP BY 13% FROM 2015 AND WAS THE SECOND
HIGHEST TAKE-UP SINCE 2009.
SMALLER LETTINGS CONTINUE TO DOMINATE THE
MARKET IN THE COMMERCIAL DISTRICT, WITH
51% OF ALL LETTINGS UNDER 1,000 SQ FT.
OFFICE SUPPLY CONTINUES TO FALL
IN THE COMMERCIAL DISTRICT, WITH
1,293,958 SQ FT REMAINING.
GRADE B/B* OFFICE SPACE MARKED
THE MAINSTAY OF THE COMMERCIAL
DISTRICT, ACCOUNTING FOR 97% OF
TRANSACTIONS AND 94% OF TOTAL
TAKE-UP.
TAKE-UP IN THE CITY FRINGE AREA WAS
44,267 SQ FT IN 2016, DOWN FROM
81,067 SQ FT IN 2015. BUT THE NUMBER
OF DEALS IN 2016 INCREASED BY 57%.
THERE WAS 942,532 SQ FT OF VACANT
OFFICE SUPPLY IN THE CITY FRINGE
AND OUT OF TOWN MARKETS IN 2016,
REPRESENTING A DECREASE OF 217,016
SQ FT FROM 2015.
2016 SAW OVER 1.3 MILLION SQ
FT OF INVESTMENT TRANSACTIONS
COMPLETED IN THE COMMERCIAL
DISTRICT. THE LARGEST DEAL WAS THE
SALE OF EXCHANGE FLAGS (350,000 SQ
FT) TO SHELBORN ASSET MANAGEMENT.

COMMERCIAL OFFICE MARKET REVIEW 2016
INTRODUCING THE COMMERCIAL
OFFICE MARKET REVIEW FOR 2016
3
Welcome to the 12th edition of
the review, which guides you
through the highlights of the
Liverpool City Region’s office
market over the last calendar
year. A big thank you goes to
the member property agents
of Professional Liverpool, who
help collate the data, and to the
Liverpool BID Company for once again supporting
the production and promotion of the report.
The figures tell a story of the office market in 2016
and, like any story, there are highs and lows. It is
positive to see that overall office take-up for the
Liverpool City Region has, for the fifth year running,
exceeded 500,000 sq ft. There were 191 deals
recorded, showing continued confidence in the
commercial property market.
As mentioned in last year’s report, there remains the
challenge of the continuing fall in availability of Grade
A office stock in the Liverpool City Region and this
year we have seen a dramatic fall in availability of
Grade B* (space of a comparable stock to Grade A).
In the Commercial District, there is just over 50,000
sq ft of vacant Grade A office space remaining,
down from 91,869 sq ft in 2015. Despite this,
take-up in the Commercial District remains strong
and we continue to welcome a wealth of first class
businesses to the area.
In terms of sectors, 2016 saw a continued rise in
the professional services sector, along with training
and the creative/IT/media sectors. Other trends
include a continuation of office to residential/leisure
conversions and smaller lettings continuing to
dominate the market.
We hope you find the review both useful and
enlightening and we welcome any feedback.
Tony Reed
Chairman
Property Group, Professional Liverpool
www.professionaliverpool.com
The document highlights
not only the strength of
the office market, but also
underlines the challenges
we face in Liverpool. It’s
extremely encouraging
to see that take-up in
the Commercial District
was up 13% from 2015
– the second highest figure since 2009. The
Commercial District continues to be the
preferred destination for the professional sector
and is becoming the location of choice for the
creative and digital industries. The Liverpool
BID company is committed to ensuring that
the Commercial District is at the heart of a
world class business district and our focus is to
support and drive investment in the area.
Bill Addy
Chief Executive
Liverpool BID Company
www.liverpoolbidcompany.com
Invest Liverpool represents
the entire Liverpool City
Region and, over the next
year, we will be working
hard to drive further inward
investment to this area.
Our key focuses will be
on Business Services,
Creative & Digital, Life
Sciences, Manufacturing and the Marine,
Ports and Logistics sectors. The City Region
has genuine world class capabilities, which
we are eager to promote. We encourage
investors looking to be part of something truly
exceptional in Liverpool to get in touch.
Ellen Cutler
Director of Investment
Invest Liverpool
www.investliverpool.com

4
COMMERCIAL OFFICE MARKET REVIEW 2016
OVERALL OFFICE
TAKE-UP IN CITY REGION
2016
523,456 sq ft
2015
576,847 sq ft
2014
563,034 sq ft
2013
534,100 sq ft
2012
534,750 sq ft
OVERALL OFFICE
TAKE-UP FOR THE
LIVERPOOL CITY
REGION WAS 523,456
SQ FT IN 2016, A
9.3% FALL ON THE
2015 FIGURE OF
576,847 SQ FT.
The combined figure
includes the Commercial
District, city fringe and
out of town markets
including Knowsley, St
Helens, South Liverpool,
Wavertree, North
Liverpool and Bootle/
Waterloo. Take-up in the
City Region was once
again dominated by the
Commercial District.
2016 saw significant
increases in take-up in
Knowsley (up 64%) and
North Liverpool, including
Bootle/Waterloo (up 60%).
The out of town market’s
largest deals were in North
Liverpool to Kura (34,983
sq ft at Caspian House)
and South Liverpool to
Duality Group (10,070 sq
ft at Hurricane Court). 62%
of transactions and 65%
of total take-up occurred
in the Commercial District.
Overall, and despite falling
supply, the take-up levels
for the City Region remain
on a positive trend, with 191
deals recorded in 2016 (215
in 2015), showcasing the
continued confidence in the
commercial property market.
THE FIVE YEAR
COMPARISON
The combined office take-up
in the Liverpool City Region
in 2011 was 382,592 sq ft -
take-up for 2016 represents a
37% increase.

COMMERCIAL OFFICE MARKET REVIEW 2016
COMMERCIAL OFFICE MARKET REVIEW 2016
OFFICE TAKE-UP IN
LIVERPOOL CITY CENTRE
(COMMERCIAL DISTRICT & CITY FRINGE)
5
386,981 sq ft
2016
383,023 sq ft
2015
451,194 sq ft
2014
376,626 sq ft
2013
325,530 sq ft
2012
THE CONTINUED
COMBINED ANALYSIS
OF THE COMMERCIAL
DISTRICT AND CITY
FRINGE (L1, L2 AND L3)
INTRODUCED IN 2015
SHOWS AN IMPROVED
TOTAL TAKE-UP FIGURE
FOR 2016.
The overall take-up for this
area accounted for 386,981
sq ft which is up 1% when
compared to 2015. It is also
important to note that, in
2016, the Commercial District
accounted for 342,714 sq ft,
whereas the city fringe was
44,267 sq ft. Despite the city
fringe total being lower than
2015, it is encouraging that
the number of deals increased
from 14 in 2015 to 22 in 2016.
THE FIVE YEAR
COMPARISON
The overall take-up in 2011
for the Liverpool City Centre
area was 318,908 sq ft and
take-up for 2016 represents
a 21% increase.

6
COMMERCIAL OFFICE MARKET REVIEW 2016
OFFICE TAKE-UP IN THE
COMMERCIAL DISTRICT
TOTAL OFFICE TAKE-UP
IN THE COMMERCIAL
DISTRICT IN 2016 WAS
342,714 SQ FT, WHICH IS
UP BY 13% FROM 2015
AND WAS THE SECOND
HIGHEST TAKE-UP SINCE
2009.
There were 119 transactions
in 2016, down from 156 in
2015, but the average size
of deal in 2016 was larger at
2,880 sq ft - up from 1,936
sq ft. This highlights the
Commercial District is no
longer solely reliant on small
occupiers and demand is
now much more balanced
across a range of sizes.
The largest deal of 2016
in the Commercial District
was Liverpool John Moores
University, taking 58,264 sq
ft at Exchange Station. The
small office market (sub-
1,000 sq ft) still represents
an important sector,
comprising 51% of all
transactions (54% in 2015),
although the actual number
of transactions was down
from 85 in 2015 to 61 in
2016.
2016 continued the trend
of larger floor plates being
converted into smaller
suites, with notable
successes at Cotton
Exchange (21 deals), Oriel
Chambers (16 deals),
Exchange Station (10
deals) and Graeme House
(9 deals).
THE FIVE YEAR
COMPARISON
The overall take-up in 2011
for the Commercial District
was 268,298 sq ft and takeup
for 2016 represents a
28% increase. In 2011, there
were a total of 44 deals in
the Commercial District at an
average size of 6,098 sq ft.
2016
119
2015 2014 2013 2012
156 121 108 61
NO. OF DEALS

COMMERCIAL OFFICE MARKET REVIEW 2016
COMMERCIAL OFFICE MARKET REVIEW 2016
BY GRADE OF OFFICE:
COMMERCIAL DISTRICT
7
7 % 47 %
GRADE B
GRADE C
2015
3 % GRADE A
43 % GRADE B*
2016
GRADE B
GRADE C
0 %
29 %
NO. OF TRANSACTIONS BY SIZE
GRADE A
GRADE B*
65 % 6 %
2016 SAW THREE
GRADE A DEALS IN
THE COMMERCIAL
DISTRICT. MSB
SOLICITORS AND
GAS TAG TOOK
SPACE AT NO 4 ST
PAUL’S SQUARE
AND SEADRILL TOOK
SPACE AT 1 MANN
ISLAND.
Grade B space accounted for the highest
number of transactions, with 78 deals
(66% of all transactions - down from 78%
in 2015). This was across 98,929 sq ft
(down 29% from 2015) of total take-up at
an average of 1,268 sq ft per transaction.
The most buoyant sector in 2016, in
terms of space taken, was in the Grade
B* category that represents refurbished
offices of a comparable specification
to Grade A buildings. This category
accounted for 37 transactions in 2016
(29 in 2015), at an average size of 6,009
sq ft (4,456 sq ft in 2015). The most
successful Grade B* buildings were
Exchange Station (10 deals at an average
of 7,821 sq ft), The Plaza (7
deals at an average of 5,412 sq
ft), and Walker House (7 deals
at an average of 6,646 sq ft).
Once again, the report
highlights that Grade B/B*
office space represents the
mainstay of the Commercial
District, accounting for 97% of
transactions and 94% of total
take-up.

8
COMMERCIAL OFFICE MARKET REVIEW 2016
BY SIZE OF LETTING:
COMMERCIAL DISTRICT
DEALS BY SIZE
AS WITH THE LAST THREE YEARS,
SMALLER LETTINGS HAVE DOMINATED
THE MARKET IN THE COMMERCIAL
DISTRICT IN 2016, WITH 51% OF
ALL LETTINGS (61 DEALS IN TOTAL)
UNDER 1,000 SQ FT.
When combined with lettings below 2,500
sq ft, this represents 70% of all deals (78%
in 2015) in the Commercial District. There
were 17 transactions over 5,000 sq ft in
2016, which is the same as 2015. There
were two deals above 20,000 sq ft in 2016
compared to zero in 2015. The two largest
lettings were to Liverpool John Moores
University at Exchange Station (58,264 sq
ft) and Armstrongs Solicitors at The Plaza
(22,575 sq ft).
When considering the total size of space
taken in each size range, it continues
to suggest a balanced economy with a
positive spread of deals across all size
ranges.
0-1,000
1,001 - 2,500
2,501 - 5,000
5,001-10,000
10,001 - 20,000
20,001+
THE FIVE YEAR
COMPARISON
51 % 15 % 5 %
2 %
19 %
8 %
In 2011, 47% of deals were
under 2,500 sq ft, compared
to 70% in 2016. In 2011, there
were six deals over 10,000 sq
ft compared to eight in 2016.
There have not been more
than eight deals in the 10,000
sq ft plus range since 2008.

COMMERCIAL OFFICE MARKET REVIEW 2016
OFFICE SUPPLY:
COMMERCIAL DISTRICT
COMMERCIAL OFFICE MARKET REVIEW 2016
GRADE B*
22%
9%
44 %
GRADE B
GRADE A
4%
GRADE C
GRADE D
21 %
to hotels, serviced apartments and
residential. This includes Silkhouse
Court, Reliance House, West Africa
House, Corn Exchange and 8 Water
Street.
The contraction also highlights the
continuing lack of new build activity
in the Liverpool office market. There
is just over 50,000 sq ft of vacant
Grade A office space (down from
91,869 sq ft) in the Commercial
District.
There have also been marked
reductions in the availability of Grade
B stock in 2016 at 113,273 sq ft
compared to 202,919 sq ft in 2015.
Grade B* stock has also reduced
from 404,239 sq ft in 2015 to
281,920 sq ft in 2016.
9
THE TOTAL OFFICE
STOCK IN THE
COMMERCIAL DISTRICT
IN 2016 WAS 5,884,220,
A DECREASE OF 370,269
SQ FT FROM 2015. THIS
IS A REDUCTION OF
OVER 900,000 SQ FT
WHEN COMPARED TO
2014, HIGHLIGHTING THE
CONTINUING REDUCTION
OF OFFICE STOCK IN THE
COMMERCIAL DISTRICT.
In terms of vacant stock,
supply continues to fall and
there is now 1,293,958 sq ft
of office space available in the
Commercial District, which is
a reduction from 1,577,022
sq ft in 2015, 2,046,255 sq
ft in 2014 and 2,295,053 sq
ft in 2013. In terms of space
that is new/refurbished and
ready to occupy i.e. Grade
A, Grade B* and Grade B),
total vacant stock is now
only 445,565 sq ft - a drop of
256,862 sq ft from 2015.
It is important to note that
65% of the available stock
is currently in the poorer
quality and unrefurbished
Grade C and D categories.
As with previous years, the
decreasing supply can be
attributed to an increasing
number of building uses
being converted from offices
As highlighted in previous reports,
there is still no new build Grade A
office space in the development
pipeline, with the exception of Peel
Ports’ Liverpool Waters scheme.
The ability of the Grade B* market to
fill the gap is also diminishing, with
no new significant refurbishments
planned for 2017.
THE FIVE YEAR
COMPARISON
The total supply between 2011
to 2016 fell from 7.15 million
sq ft to 5.8 million sq ft. Total
available space in the Grade B
and B* categories shows a 48%
reduction from 2011 to 363,814
sq ft. The supply of Grade A
space in 2016 represents just
4% of available office stock,
down from 13% in 2011.

10
COMMERCIAL OFFICE MARKET REVIEW 2016
CITY FRINGE TAKE-UP
TAKE-UP IN THE CITY FRINGE AREA
WAS 44,267 SQ FT IN 2016, DOWN
FROM 81,067 SQ FT IN 2015. BUT
THE NUMBER OF DEALS IN 2016
INCREASED BY 57%.
Unlike in 2015, where the largest deal
was to the NHS at The Department
(33,433 sq ft), the largest deal in 2016
was 10,452 sq ft to Regus at The Tea
Factory in the Rope Walks.
THE FIVE YEAR
COMPARISON
Take up in 2011 in the city
fringe was 50,610 sq ft,
which is 6,342 sq ft above
the 2016 figure.
2014 67,852 sq ft
2015
81,067 sq ft
2016
44,267 sq ft
OUT OF TOWN TAKE-UP
OUT OF TOWN TAKE-UP IN 2016 WAS 136,475 SQ FT
- BELOW 2015 (193,824 SQ FT) BUT UP MARKEDLY
ON 2014 (111,840 SQ FT). THE FIGURE HIGHLIGHTS
A POSITIVE YEAR IN MOST OUT OF TOWN LOCATIONS,
PARTICULARLY KNOWSLEY, NORTH LIVERPOOL, BOOTLE
AND WATERLOO.
3.0 %
14 %
5 %
32 % 30 % 16 %
Bootle/Waterloo enjoyed a positive 12 months, with 43,250 sq ft
of take-up (21,383 sq ft in 2015) across 24 deals. North Liverpool
also had another successful year with take-up of 40,370 sq ft
(30,962 sq ft in 2015).
The key deals in the out of town market included 34,983 sq ft
at Caspian House, North Liverpool, to Kura and 11,000 sq ft at
Pinnacle House, Bootle, to David Philips and Partners.
In terms of number of transactions, Burlington House enjoyed a
successful year, with a total of 16 deals over the 12 month period.
SOUTH LIVERPOOL
WAVERTREE
KNOWSLEY
NORTH LIVERPOOL
BOOTLE / WATERLOO
ST HELENS

COMMERCIAL OFFICE MARKET REVIEW 2016
COMMERCIAL OFFICE MARKET REVIEW 2016
TAKE-UP BY GRADE OF OFFICE:
CITY FRINGE AND OUT OF TOWN
11
AS IN PREVIOUS YEARS, THERE
IS A DECREASING SUPPLY OF
AVAILABLE GRADE A SPACE IN
OUT OF TOWN AREAS. IN FACT, AS
IN 2015, THERE WAS ONLY ONE
GRADE A DEAL IN 2016 – 5,387
SQ FT TO H&T GROUP AT ALASKA
HOUSE, NORTH LIVERPOOL. LIKE
IN THE COMMERCIAL DISTRICT,
GRADE B WAS BY FAR THE
DOMINANT OPTION, WITH 92% OF
TOTAL SQ FT TAKEN - AN INCREASE
FROM 78% IN 2015 AND 68% IN
2014.
Take-up of Grade C was down
significantly in 2016 at 8,680 sq ft,
compared to 45,899 sq ft in 2015.
With the lack of new development in
out of town locations, we would expect
similar trends in forthcoming years.
GRADE B
GRADE A
GRADE C
92 % 5 %
3 %

12
COMMERCIAL OFFICE MARKET REVIEW 2016
TAKE-UP BY SECTOR:
COMMERCIAL DISTRICT
9 % 3 %
42 %
6 %
1 % 6 %
23
10 %
%
FINANCIAL / BANKING
PROFESSIONAL SERVICES
TRAINING
PUBLIC SECTOR
DISTRIBUTION / SHIPPING
OUTSOURCING / CALL CENTRE
OTHER
CREATIVE / IT / MEDIA
AS WITH 2015, THE
LARGEST PROPORTION OF
2016 TAKE-UP WAS IN THE
PROFESSIONAL SERVICES
SECTOR, WHICH ACCOUNTED
FOR 42% OF TOTAL TAKE-UP,
A SLIGHT INCREASE FROM
41% IN 2015. THIS SECTOR
ACCOUNTED FOR 44 DEALS
(53 DEALS IN 2015), AT AN
AVERAGE OF 3,387 SQ FT
PER LETTING (2,333 SQ FT
IN 2015).
The training sector had a
marked increase from 6% in
2015 to 23% in 2016, which
was largely due to the letting of
58,264 sq ft to Liverpool John
Moores University at Exchange
Station. The Commercial
District continues to attract
companies from the creative/
IT/media sector, with 9% of
take-up and 24 individual deals
across a range of buildings,
including Cotton Exchange,
Tempest, Honeycomb and Oriel
Chambers. The largest deal in
the creative/IT/media sector was
to Mando, taking 5,286 sq ft at
5 St Paul’s Square.
One of the largest falls in takeup
was in the financial/banking
sector, which accounted for just
3% of take-up (12% in 2015)
across five individual deals. The
remaining sectors, including
call centres/outsourcing and
distribution/shipping, all had a
much smaller impact, with a
combined 7% of take-up.
THE FIVE YEAR
COMPARISON
Professional and financial
services occupiers made
an eye-catching return to
the Liverpool Commercial
Office Market Review in
2011, accounting for 60.4%
of take-up. At the time, this
represented a remarkable
turnaround. Professional
and financial services
continue to dominate in
2016, representing 45% of
total take up.

COMMERCIAL OFFICE MARKET REVIEW 2016
COMMERCIAL OFFICE MARKET REVIEW 2016
TAKE-UP BY SECTOR: CITY FRINGE
THE DOMINANT SECTOR IN THE
CITY FRINGE REGION IN 2016,
WITH 50% OF TAKE-UP, WAS THE
‘OTHER’ SECTOR. THIS HIGHLIGHTED
THE WIDE RANGE OF BUSINESSES
LOCATING TO THE FRINGE, INCLUDING
SERVICED OFFICES OPERATOR REGUS,
WHICH TOOK 10,452 SQ FT AT THE
TEA FACTORY. IT ALSO INCLUDES
A NUMBER OF LETTINGS FROM
COMPANIES IN THE CONSTRUCTION
SECTOR, LARGELY DUE TO THE
VOLUME OF REDEVELOPMENT IN THE
AREAS AROUND ROPEWALKS AND
BALTIC TRIANGLE.
Professional
services also
enjoyed a buoyant
2016, with 41%
of take-up, which
was an increase
from 5% in 2015.
The notable deal in
this sector in 2016
was to Thompson
Solicitors, taking
5,605 sq ft at the
newly refurbished
88 Church Street.
0
PUBLIC SECTOR
41 % 3 % 0 6% 50 %
PROFESSIONAL SERVICES
FINANCIAL / BANKING
TRAINING
CREATIVE / IT / MEDIA
OTHER
13
TAKE-UP BY SECTOR: OUT OF TOWN
THE OUT OF TOWN
TAKE-UP WAS 136,475
SQ FT WHICH WAS DOWN
ON THE 193,824 SQ
FT IN 2015. THE MOST
DOMINANT SECTOR
WAS ‘OTHER’ AT 42%,
FOLLOWED BY THE
PROFESSIONAL SERVICES
SECTOR AT 38%.
0
PUBLIC SECTOR
The key deal to raise the figure
in the ‘Other’ sector was 34,983
sq ft to Kura at Caspian House
in North Liverpool. This was the
biggest deal by far.
41 % 3 % 0 6% 50 %
PROFESSIONAL SERVICES
FINANCIAL / BANKING
Highlight deals in the Professional
Services sector were 10,070 sq
ft to Duality Group at Hurricane
Court, South Liverpool, 11,000
sq ft to David Philips and Partners
at Pinnacle House, Bootle, and
8,318 sq ft to CRG Group at Kings
Business Park, Knowsley.
The creative/IT/media sector
accounted for 5% of take-up in
2016, which was a reduction from
27% in 2015, but up from just 3%
in 2014.
TRAINING
CREATIVE / IT / MEDIA
OTHER
7 % 38 % 6 % 2 % 5 % 42 %
OTHER
CREATIVE / IT / MEDIA
TRAINING
FINANCIAL / BANKING
PROFESSIONAL SERVICES
PUBLIC SECTOR

14
COMMERCIAL OFFICE MARKET REVIEW 2016
OFFICE SUPPLY: CITY FRINGE
AND OUT OF TOWN
62 %
GRADE B
1 %
GRADE A
37 %
GRADE C
THERE WAS 942,532
SQ FT OF VACANT
OFFICE SUPPLY IN
THE CITY FRINGE
AND OUT OF TOWN
MARKETS IN 2016,
REPRESENTING A
DECREASE OF 217,016
SQ FT FROM 2015
AND 463,955 SQ FT
FROM 2014. AS WITH
THE COMMERCIAL
DISTRICT, THIS
CONTINUES TO
REFLECT THE LACK OF
NEW SUPPLY TO THE
OFFICE MARKET.
There is now just 12,000 sq
ft of Grade A space available,
which is a fall from 151,178 sq
ft in 2015.
The lack of Grade A
accommodation has increased
importance on Grade B
office space, which stood at
approximately 580,000 sq ft at
the end of 2016. 45% of the
Grade B stock is in the city
fringe area and is dominated
by the high specification
refurbishments at Watson
Building (75,000 sq ft) and The
Department (40,000 sq ft).
In terms of Grade C supply,
Wavertree continues to
dominate with 139,979 sq ft
available. Bootle/Waterloo also
saw another fall of 7% in Grade
C availability, to 109,056 sq ft.
City fringe Grade C availability
remained relatively static at
56,947 sq ft (58,333 sq ft in
2015).
2016 saw the trend for office
to residential/hotel conversions
continue, with the notable deal
being the sale of the 27,354
sq ft former office at Arthouse
Square, city fringe, to Signature
Living for the purpose of hotel/
leisure conversion.

COMMERCIAL OFFICE MARKET REVIEW 2016
RENTAL
VALUES
Rental levels have remained remarkably consistent to the
previous four years, with headline rents at £20.50 per sq
ft for Grade A space within the Commercial District. Grade
B* has seen small increases, with headline levels now at
£17.50 per sq ft and Grade B at £13.50.
Out of town rents continue to plateau in 2016, with
typical rents of around £9.50 - £11.00 per sq ft, although
significantly, there were hardly any Grade A deals. North
Liverpool achieved £11.00 - £11.50 per sq ft.
15
BUILDING
TRANSACTIONS
2016 has seen over 1.3 million sq ft of investment
transactions being completed in the Commercial District,
with key deals including:
India Buildings - comprising over 500,000 sq ft over 10
floors sold to Shelborn Asset Management Limited for
£17 million. Net Yield Initial 4.23%.
No1 Tithebarn - sale of 113,500 sq ft at No.1 Tithebarn
for the sum of £7.2 million to a private family trust. Net
Initial Yield 8.8%.
Exchange Station - Commercial Estates Group and
Anglo Scandinavian Estates completed the £13 million
acquisition of 190,000 sq ft. Net Initial Yield 8.0%.
Yorkshire House - sale of 24,400 sq ft office on Chapel
Street for £2.74 million to Bolton-based developer Millfield
Estates. Net Initial Yield 9%.
Federation House - The 21,119 sq ft building sold to the
Robert Smith Group for a sum of £2.25 million, which reflects
a capital value of £106 per sq ft. Net Initial Yield 9.2%.
20 Chapel Street - Canmoor purchased the freehold of
the 155,000 sq ft building at the heart of the Commercial
District on behalf of British Airways Pension Trustees
(BAPTL) for £20 million. Net Initial Yield 7.42%.
Exchange Flags – 350,000 sq ft to Shelborn Asset
Management Limited for £45 million. Net Initial Yield 8.8%.

ACCREDITATION
This report has been compiled by members of the Property Group of Professional Liverpool, with assistance from the
Liverpool BID Company.
NOTE ON TERMINOLOGY
For the purposes of this research, Grade A space was defined as office space completed since 1st January 2012;
Grade B space as office space completed before 1st January 2012 or other accommodation recently refurbished
or due to be refurbished. Grade B* is higher specification including air conditioning and raised floors. Grade C is
unrefurbished but ready for occupation. Grade D is office space which could not be occupied without substantial
refurbishment and where no plans exist for such refurbishment.
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