Banks the biggest lessees

19 May, 2010, Frankfurt

Banks in Europe have leased 400,000 m² in the last six months
Most leases in Paris and London
Nine major transactions over 10,000 m²
Office market in Frankfurt, Brussels and Amsterdam has bottomed out

Around 400,000 m² of office space has been leased to banks in Europe in the last six months making the banking sector the biggest lessee in terms of space leased. 66% of the total lease volume was achieved through a small number of major transactions. According to the latest 'C&W European Banking Briefing – Spring 2010' report from Cushman & Wakefield (C&W), Europe's banks have leased almost twice as much space in the last quarter of 2009 and first quarter of 2010 as in the previous six months and they have rented the largest amount of total space since 2008. This gives banks 11% of total European lease volume, which is 2.5% up from the previous six months.
Banks leased the largest amount of space in the last half-year in Paris and London, with leasing activities distributed variably in geographical and chronological terms. Whereas on the Parisian office market, 60% of the transaction volume occurred in the fourth quarter of 2009, the London Docklands reported a 39% leasing quota in the first quarter of this year. Furthermore, Brussels and Moscow were among the dominant markets in the past six months with 42,000 m² and 27,500 m² respectively.

Nine leases over 10,000 m²

In total, European financial institutions leased office space of over 10,000 m² on nine occasions. Four of these major leases were made to owner-occupiers and totalled over 130,000 m², thus accounting for 32.5% of the total lease volume to banks in the fourth quarter of 2009 and the first quarter of 2010. Owner-occupiers leased three large spaces in Paris and one in Amsterdam. For example, Credit Agricole sold the former 'Evergreen' office development in Montrouge with 80,000 m² as part of the consolidation of its Parisian unit. This project development is designed for 9,000 employees and will allow Credit Agricole to make savings by cutting down on its office space.

"The mood in the European office market has noticeably improved", state C&W office lessors who go on to comment that: "In Frankfurt, Brussels and Amsterdam, the office leasing market has definitely reached the bottom of the current cycle. In the City and the Parisian CBD, leases are rising again, which has not been seen for a long time. These are good signs, which the banks are now taking into account in their strategic planning for the future."

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