European banks’ take-up of new office space in London have plummeted by a massive 80% in Q1 of 2009 against the long-term average, with London, Moscow and Warsaw markets particularly badly affected.
In London, 2008 saw an increase in banking commercial property activity, thanks to JP Morgan’s purchase of almost 2 million square feet of office space in the Docklands area. Docklands currently has the highest proportion of total commercial property let by the banking sector, at 42%.
Only 44,000 square metres of take-up occurred in Q1 of 2009, against more than 400,000 square metres the previous quarter. Excluding JP Morgan’s purchase, this quarter saw a 94% drop against the Q4 of 2008.
Moscow suffered a 97% fall in bank take-up and Warsaw, 87%. Some major European cities saw no new office space let by banks at all in this period, though others recorded increases.