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Banking Space for Rent

By Lora Johnson

As the stock market remains unsteady London banks are beginning to search for more affordable banking space. Property Consultants Cushman and Wakefield reported banks are being forced to cut property costs.

Many banks and financial companies are searching for space occupiers to sub-let space in order to prevent selling. The Japanese bank Nomura is feeling the pressure as they seek occupiers to fill the space in their building located near the London Stock Exchange, they once called home. Back in September 2008 Nomura purchased the European operation of Lehman Brothers, which required larger premises, and are currently to sub-let such a prestigious office space. This bank is one of the 107 other banks called for cutting funds and 54% searching for sub-lets.

In the past 18 months the London main Financial District has been offering flat rates of 55 pounds per square foot for prestigious office space. Such is a result of July reports by CBRE that show a 7.4 percent increase in vacancies, the highest vacancy number since late 2009. Bank of America located at the heart of the east London’s Canary Wharf district is considering relocating and removing back-office staff in order to cut-cost and save 3 billion pound a year. Although no decision has been made, such actions will result in loss of 30,000 jobs by 2014.

Citigroup is not only searching to relocate but they are recruiting members in Northern Island and Belfast. Such move will employ thousands of people and will save funds for Citigroup by cutting their rent cost to a third of what they pay for their current location.

BNP Real Estate data shows vacancy rates in Frankfurt have decreased by 2% causing to the Bank of Frankfurt. This can be a result of lower numbers of investment bankers and traders. Furthermore, ownership of property Deutsche Bank and Commerz Bank are located at Frankfurt HQs, do not share similar flexibility in relocation as other banks in the district.

Credit Suisse contains beneficial financial plans as they announced in previous months that they plan to raise 500 million Swiss Francs bu moving jobs to out-of-town complexes in areas such as Uetlihof near Zurick where 8,000 employees are currently employed and sell other property.

Although banks have received nearly 330 million pounds from Canary Wharf office leased and sold to Qatari Investors, landlords are attempting to prevent fleeing locations by utilizing current new funds. Instead, landlords are searching for flexible desined areas where more than one person can utilize an office desk.

Unlike other mainland European banks, London based banks are bind to their leases for 25 years. Nat West and Midland Bank though they would be around forever and build skyscraper; however, currently Nat West is part of RBS and Midland Bank is part of HSBC leaving their skyscraper and emblazoned name vacant and ready for use by other members of the financial world. Currently Real Estate do not search for deals past 10 to 15 years for banks providing the flexibility which other banks do not have as a result of contract bindings.

If you’re seeking commercial properties in central London then our expert agents can assitst you find the perfect location. We have extensive selection of office leasing in central London available. For our complete listings please go to our website.

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Article Citation
MLA Style Citation:
Johnson, Lora "Banking Space for Rent." Banking Space for Rent. 17 Oct. 2012. uberarticles.com. 23 Jan 2018 <http://uberarticles.com/real-estate/banking-space-for-rent/>.

APA Style Citation:
Johnson, L (2012, October 17). Banking Space for Rent. Retrieved January 23, 2018, from http://uberarticles.com/real-estate/banking-space-for-rent/

Chicago Style Citation:
Johnson, Lora "Banking Space for Rent" uberarticles.com. http://uberarticles.com/real-estate/banking-space-for-rent/


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