Investment banks will boost demand for London office space over the next three years, as the giants of the financial sector embark on an extensive recruitment drive.
According to a report from BNP Paribas Real Estate, over this period banks based in the capital expect to recruit some 11,500 new staff.
In turn, the influx of recruits will require an additional 1.6 million square feet of space to house them. This equates to an area equivalent to the Shard four times over.
Dan Bayley, head of central London at the bank’s commercial property division, said the trend was a sign that confidence is finally returning to the formerly beleaguered financial sector.
Bayley stated: “75 per cent of the banks surveyed said that their business would grow over the next three years with 55 peer cent saying they would increase employment over the same period - mostly in front of house operations.”
He added: “To put this into perspective, this is the equivalent of four extra Shards or five extra Heron Towers – good news for the City in particular as this is where most of the banks will be looking.”
The shortfall in available space caused by returning demand is also expected to send office rents up in the City and central London.