The banking sector has increased its share of the total office take-up in 15 of the top European banking locations in Europe from 8% at the beginning of the year to the current figure of 13%, according to the latest edition of the EMEA Banking Business Briefing by Cushman & Wakefield.
The banking sector has increased its share of the total office take-up in 15 of the top European banking locations in Europe from 8% at the beginning of the year to the current figure of 13%, according to the latest edition of the EMEA Banking Business Briefing by Cushman & Wakefield.
Office take-up by the banking sector in these locations totalled 670,000 m2 over the first three quarters of 2007, 10% up on the same period last year. The third quarter was the most active, with a record 280,000 m2 transacted. This coincides with a drop in overall office take-up in the 15 locations, which in the first nine months of 2007 was 7% down on the same period last year.
Guy Douetil, partner in charge of Cushman & Wakefield's EMEA Banking Group, said: 'The banking sector accounted for a record amount of take-up of office space in Europe in the first nine months of 2007. With the globalisation of the world’s banking sectors, we are seeing the concentration of activity in a constellation of key banking locations.'
However, following lthe onset of the credit crunch in late summer, the sector is now entering 2008 in a different mode. Douetil continued: 'It is too early to predict the full effects of the credit crunch, but for the time being we are seeing banks deferring their real estate decisions in the short term. However, we are not seeing a reduction of the amount of office space that they occupy.'
Regarding next year, he added: 'Demand will be weaker in 2008, but the supply of good-quality office space in the right location is tight. If the effects of the credit crunch filter through to lead to a fall in speculative development, this will mean that the real estate market will enter the next upturn in banking activity in a strong position.'
The EMEA Banking Business Briefing produced by Cushman & Wakefield reveals that the four main traditional banking locations of London, Paris, Frankfurt and Brussels are now joined by Moscow, with these five cities accounting for two-thirds (67%) of all banking take-up in the first three quarters of 2007.
Moscow's take-up amounted to 84,900 m2 in the first nine months of 2007, coming in third behind London with 117,200 m2 (City & Docklands and the West End) and Paris (Ile de France) with 111,800 m2, and above Frankfurt, with 81,800 m2.