The Trickser

Banks Cut Back Office Space by 80%!

Posted by admin on May 27th, 2009 — Posted in Advertising Industry, Doing Business, Your Commerce

Banks are feeling the effects of the global economic crisis along with the rest of the financial world as banks in Warsaw, London, and Moscow are reporting that they have reduced office space occupancy by 80% during early 2009.

Cushman & Wakefield led the study, and said that says it expects banks to begin to bounce back in the real estate market as they continue to increase sales of real estate and promote leaseback programmes that will help raise capital. Unicredit, BBVA, and HSBC have already announced commitment to European programmes of similar interests.

This is in addition to many banks which have received bailout money from the government including UK banks.

Cushman said that banks will continue to renegotiate leases to combat falling rental and capital values. Banks earn more revenue by working with tenants than losing them altogether.

Yet, even though many banks have merged to help reduce costs Cushman reports that open tenant space is still not being marketed within the UK and European markets because banks are still attempting to reduce costs. Still, Cushman expects banks to start renting deskspace as 2009 continues.

JP Morgan did play a part in the office space increase in 2008 by purchasing a large site in Docklands commercial district, but it has been forced to reduce its projected growth plans substantially. This was the largest failure to take up in London as the plans called for a reduction of space from 407,305 square feet to 43,630 square feet.

Docklands has the most tenant space with 42% available for banks to let.