An industrial analyst is worrying that Liverpool may soon face a shortfall of Grade A office space, due to a distinct lack of investor interest in the region.
Mike Tapp, the owner of Liverpool’s historic India Buildings, has suggested that developers must work harder to ensure that high-quality office space is available. Mr Tapp stated that if this does not become a key priority for the local council, occupiers will shift their gaze to other cities.
According to Bdaily, Mr Tapp said: “Whilst there was a spike in availability for city centre offices in 2011, Liverpool, like most regional property markets, has seen a dearth of development and refurbishment activity since. So much so that we are approaching the tipping point when known demand for grade A space will overtake current supply. This is the right time for owners to be looking at investing in their buildings."
The India Buildings are actually an example of older stock that has then been refurbished to offer Grade A space for potential buyers. Mr Tapp reinforced that £1.5 million has been invested in redeveloping 35,000 sq ft space on the fifth floor, which in turn will bring long-term gains. Built between 1924 and 1932, the India Buildings were designed by art deco artist Herbert Rowse and then became the headquarters for Alfred Holt’s Blue Funnel Line.
These views correlate with recent research carried out by consultants GVA, which found that Liverpool will face a deficit of Grade A office space over the next two years. These figures follow various reports of how the commercial market is suffering regionally outside of the capital city, with high vacancy rates and investors less inclined to take-on secondary sites in other cities.