Liverpool’s commercial district could get its first new grade A office space in more than a decade as the Combined Authority offers cash for major city region office, industrial and laboratory schemes. Tony McDonough reports
Liverpool City Region Combined Authority is offering cash support for major office, industrial and laboratory schemes.
Developers have until April 1 to apply for funding for projects that require infrastructure to support and unlock inward investment. This targeted funding is designed to help address key market failures identified through the Liverpool City Region Growth Plan.
This could be good news for the long-planned Pall Mall office scheme in Liverpool’s commercial district. Liverpool City Council has already pledged £15m to support the development that would offer 111,500 sq ft of office and commercial space.
This was due to go ahead before COVID with a pre-let from BT but the communications giant pulled out following the pandemic as it reviewed its office needs. This new project would cost £55m.
In February one of the city’s leading commercial property professionals, CBRE’s local head of office Neil Kirkham, told LBN that the ongoing shortage of grade A space in the commercial district is the “elephant in the room”.
Liverpool’s commercial district has fallen behind other regional cities in recent years as its pipeline of grade A space has dried up. New space is seen as essential to attract blue chip occupiers and the last development was St Paul’s Square more than a decade ago.
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Key to speculative development is headline rents. Developers and investors won’t take the risk unless they can see good returns. In recent years Liverpool’s headline rent, currently at £29.50 per sq ft, has been seen as too low to kick-start new schemes.
This new funding call from the Combined Authority could finally unlock Pall Mall along with other commercial schemes in the region.
Cabinet Member for Business, Investment and Trade Cllr Mike Wharton, said: “Unlocking high quality land and property is fundamental to the future of the Liverpool city region.
“These new funding calls will accelerate the development of the modern offices, laboratories and industrial space our growing sectors need.
“This is about creating the right conditions for businesses to innovate, invest and expand, so that our communities continue to benefit from more jobs, more opportunities and a stronger, more resilient economy.”
The following calls are live from March 4 until midday on April 1, for three priority growth areas / sectors:
- Grade A office space – LCRCA is seeking to invest in projects which deliver a minimum 60,000 sq ft of new or refurbished commercial floorspace.
- Specialist laboratory space – LCRCA is seeking to invest in projects which deliver new or refurbished Category 1 or 2 laboratory space, clean room space and ‘write up’ facilities. This will require delivery of at least 40% of overall floor space for laboratory or clean room uses.
- Premium industrial units – LCRCA is seeking to invest in the delivery of units of new or refurbished floorspace designed to accommodate occupiers undertaking Class E(g) and B2 industrial activities.
Further details on the scope of each call and how to apply can be found on the LCRCA website.