Deloitte have revealed that although financial companies are still the biggest occupier of the London office market, banks’ percentage of office space has seen a decrease of 13%.
Now making up 54% of the office market share in the financial sector, banks are struggling to keep hold of their real estate due to losses and cut backs caused by the financial crisis.
Research Manager from Deloitte, Shaun Dawson, revealed that as the homegrown banks such as Barclays, HSBC, Lloyds Banking Group and The Royal Bank of Scotland Group are greatly cutting back in office space, foreign banks are filling the void. The Agricultural Bank of China has moved in on the real estate market, taking a large percentage of office space.
Job roles are being created in an attempt to counter the need for cutbacks left behind since the crisis, but estimates show that this is not enough to prevent further office space being left vacant over the coming years. IT and automation systems are also held partially responsible for the amount of cutbacks that have had to be made throughout the financial and banking sector.
Meanwhile, insurers and trading firms are growing their office footprint by occupying any vacant space, leaving statistics and market share uncertain for the future.
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