Businesses still want to be kings of Castle Street

May 21 2008 by Tony McDonough, Liverpool Daily Post

LIVERPOOL’S Castle Street office market will continue to thrive despite several high-profile departures, according to a leading city agent.

Last week, the Daily Post revealed that banking giant HSBC was vacating its 17,000 sq ft headquarters on the corner of Castle Street and Dale Street.

The bank has spent several million pounds on a new flagship retail outlet in Lord Street, close to the new Liverpool One development.

It has also instructed agents at CB Richard Ellis to find it 10,000 sq ft of high quality office space in the central business district to house its corporate and commercial teams.

HSBC joins a growing list of companies who have left the immediate vicinity of Castle Stree/Dale Street to move to higher grade accommodation.

These include the law firms Hill Dickinson and DWF, who are moving to St Paul’s Square, off Old Hall Street, an area which is rapidly becoming the heart of the central business district.

Concern has been expressed about the space that is left behind, but Chris Hennessey, of CBRE, believes landlords will have little trouble in finding new tenants.

He said: “Even though firms like Hill Dickinson have left to upgrade their accommodation, there remains a big appetite for the Castle Street area.

“There is a lot of demand for smaller firms wanting space from as little as 500 sq ft up to 10,000 sq ft and they still see Castle Street as a prestigious address.”

Mr Hennessey says that two of the major office buildings in the area are to undergo major refurbishments, and says this shows their owners are confident there is occupier demand.

Castle Chambers, at just under 100,000 sq ft, and Pearl Assurance House, which was home to Hill Dickinson and comprises 71,500 sq ft, are both due for upgrades. He added: “Local SMEs will still be attracted to the area. However, there is some improvement work that needs doing. The pavements, for example, are a bit wobbly and could do with being upgraded.”

tonymcdonough