Nearly three-quarters of banks (72%) with a presence in central London plan to streamline their real estate portfolios over the next two years.
Research from global property adviser CBRE has found that banks want to save money by consolidating their property into priority locations, with London likely to remain a growth area.
A third (34%) of respondents to CBRE’s latest occupier survey, which included 19 of London’s largest banks, expected to see consolidation of real estate assets in response to an expected rise in M&A activity in the banking sector.
Meanwhile, over half (56%) said they expected to consolidate their current office space occupied, with just 6% stating that they planned to maintain their current portfolio.
According to the report, other measures that may affect the volume of London office space taken by the banking sector in the next two years include a trend for large financial institutions to relocate some functions to the UK regions, which could reduce salary bills by as much as 40%.
The survey confirmed that maintaining a core presence in London was central to banks’ future plans. This is due to its unrivalled position as a global financial centre, wide talent pool, cultural attractions and central time zone between the New York and Asian markets.
Sally Percy is editor of The Treasurer