Liverpool Re-launches Pall Mall Grade A Office Project with £15 Million Boost

Liverpool City Council has approved a pivotal £15 million investment package to revive the stalled Pall Mall Grade A office development, a move expected to reshape Liverpool's commercial landscape and reinvigorate investor confidence.

The funds will ensure the completion of the first phase, an eight-storey, 111,500 sq ft office building, along with an urban park and ground-floor retail spaces. It marks the first new Grade A office scheme in Liverpool's central business district for over a decade.

Council Steps In to Unlock Development

With commercial rents at approximately £29/sq ft, well below those of competing northern cities, developers were struggling to justify speculative build costs. The council's intervention includes:

Up to £15 million in grant funding

A 15‐year rent guarantee on any unlet floorplate

Requirement for Kier Property to secure pre-lets on at least 40% of the space before June 2028

Cabinet member Nick Small said the scheme must proceed to avoid losing existing businesses and boost Liverpool's appeal to new investors.

Consistency with the Regional Masterplan

The Pall Mall scheme aligns with Liverpool's Strategic Futures programme, spanning Bramley‐Moore Dock to Paddington Village. The initiative supports remediation, planning, design, and accelerated development in key regeneration zones.

The public-private partnership between Kier Property and CTP is poised to develop the site following remediation, funded by the Liverpool City Region Combined Authority in 2020. The vision includes up to 400,000 sq ft of Grade A space across three phases, alongside a 284-bed hotel.

Citywide Ripple Effects Anticipated

Industry observers emphasise the ripple effect, new offices will draw professional talent, stimulate demand for nearby residential and leisure projects, and reinvigorate Liverpool's urban core. The scheduled 2028 completion also coincides with broader citywide regeneration efforts.

One expert noted: "It will act as a catalyst to stimulate investor confidence in the city," - Cllr Small.

Positioning Liverpool in the UK Office Market

The delivery of this new office space will help Liverpool close the gap on northern hubs. For context, Manchester and Bristol headline office rents at £44/sq ft and £48.40/sq ft respectively, while Glasgow offers around £41.50-Liverpool lags but stands to benefit from new Grade A stock.

With no significant office schemes since 2012's St Paul's Square, Liverpool's pipeline has run dry, stalling economic momentum, until now.

Pat Harper (Total Property Group) on Liverpool's Momentum

Pat Harper, founder of Liverpool-based Total Property Group, says:

"The explosive growth in the city will ensure that both new homeowners and property investors will be reaping great rewards which they would not see anywhere else. Liverpool is back."

He emphasises that regeneration, rising employment, and strong rental demand are revitalising Liverpool's buy-to-let appeal.

Please find out more about Total Property Group on their website:
https://www.totalpropertygroup.co.uk/

Next Steps & Risks to Monitor

The approval requires ministry sign-off, which is currently under consideration ahead of the June 4th Cabinet meeting. If approved, construction is expected to begin later this year, with completion targeted for summer 2028.

However, delivery risks remain:

Achieving or offsetting the 40% pre-let threshold

Sustaining rental demand post-COVID recovery

Securing investment for phases two and three

Why This Matters

Economic Stimulus: Unlocks high-quality workspace for professional services and tech firms.

Investor Signal: Shows public backing where private capital sees risk, central to regenerating Liverpool's commercial core.

Strategic Momentum: Advances Liverpool's Strategic Futures vision for a unified development corridor across the city centre.

Liverpool's decision to invest directly in the Pall Mall scheme underlines a shift in the UK's regional office market. With rising pressure to level up northern cities, this bold intervention could be a blueprint for aligning public responsibility with market realities.

Expect the government's response, particularly on pre-lets and future funding, to determine if Liverpool's Grade A office renaissance truly takes flight.

For further regional property commentary, see our feature on the retail investment rebound in UK shopping centres.

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At Researching Creative & Cultural Industries London (RCCIL), our mission is to spearhead the understanding and enhancement of the UK's creative sectors and redevelopment areas.

This release was published on openPR.