Lettings by banks accounted for just 8% of all new City office lettings in the first quarter of 2008 compared to their usual 40% proportion, according to commercial property agency Atis Real.
Further signals that the credit crunch is truly biting into office lettings comes from the report that banks are increasingly choosing short-term leases, as revealed by research from MWB Business Exchange.
This focus on short-term lettings and greater flexibility has led to serviced office spaces gaining popularity as lower risk ventures.
Following their handling of the Northern Rock crisis, the FSA is looking to recruit new 100 employees. This expansion will lead the FSA to outgrow their headquarters in Canary Wharf spurring them to seek additional office space to house its growing workforce.