According to current reports released by Cushman and Wakefield a well known property consultant, banks are headed towards a significant contraction and are being forced to cut property cost.
As 54 percent of financial companies are seeking to sub-let available space that is not being utilized, almost 107 other banks are cutting property space to save cost. Back in September 2008 Japanese bank Nomura entered a deal with European operations of Lehman Brothers forcing them to seek larger premises for their business is currently seeking tenants looking for prestigious office space in their property located near the London Stock Exchange.
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.
Banks in Frankfurt consist of lower numbers of investment bankers. BNP Real Estate Data showed that in 2006 the vacancy rates in Frankfurt decreased by 2% falling form 15 percent to 13 percent. However, Fankfurt banking does not contain much flexibility in moving due to the ownership of Deutsche Bank and Commerz bank Frankfurt HQs location.
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.
Through Canary Wharf investors of Qatari, banks received 330 million pounds from sales and leasebacks. However, although this money is available to be utilized landlords are seeking office space that provides better flexibility and architectural deisgn that can increase number of employees working out of the location. Such design will have the availability to increase number of employees per square foot and workstations where multiple user can share a desk at different times. Such smart designing will save on cost by avoiding having to build dedicated workstations.
Due to 25 year leases many London based banks are unable to relocate, unlike mainland European banks. Currently leas signings do not exceed 11 to 15 years. Nat West and Midland Bank never considered failure, so they build a skyscraper and emblazoned the name in stone. Hence, Nat West is currently part of RBS and Midland Bank is part of HSBC.
As 54 percent of financial companies are seeking to sub-let available space that is not being utilized, almost 107 other banks are cutting property space to save cost. Back in September 2008 Japanese bank Nomura entered a deal with European operations of Lehman Brothers forcing them to seek larger premises for their business is currently seeking tenants looking for prestigious office space in their property located near the London Stock Exchange.
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.
Banks in Frankfurt consist of lower numbers of investment bankers. BNP Real Estate Data showed that in 2006 the vacancy rates in Frankfurt decreased by 2% falling form 15 percent to 13 percent. However, Fankfurt banking does not contain much flexibility in moving due to the ownership of Deutsche Bank and Commerz bank Frankfurt HQs location.
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.
Through Canary Wharf investors of Qatari, banks received 330 million pounds from sales and leasebacks. However, although this money is available to be utilized landlords are seeking office space that provides better flexibility and architectural deisgn that can increase number of employees working out of the location. Such design will have the availability to increase number of employees per square foot and workstations where multiple user can share a desk at different times. Such smart designing will save on cost by avoiding having to build dedicated workstations.
Due to 25 year leases many London based banks are unable to relocate, unlike mainland European banks. Currently leas signings do not exceed 11 to 15 years. Nat West and Midland Bank never considered failure, so they build a skyscraper and emblazoned the name in stone. Hence, Nat West is currently part of RBS and Midland Bank is part of HSBC.
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