Frankfurt’s financial district is now too full for banks considering new EU location
Frankfurt’s efforts to steal London’s business have been dealt an embarrassing blow by Germany’s own central bank.
The Bundesbank has moved into one of the few office blocks suitable for international lenders in Frankfurt, undermining attempts to woo British banks ahead of Brexit.
It is to lease an extra 75,000sq ft in Frankfurt’s Trianon skyscraper – one of the only high quality spaces that might suit a bank.
Although Frankfurt’s office vacancy rate is 9 per cent – higher than many other German cities – the quality is mostly too poor for big institutions.
The City has a rate of 7.2 per cent due to demand from global firms. But 5.4m sq ft of offices are being built to accommodate more.
‘Several international banks are looking for office space in Frankfurt,’ estate agent Savills told Bloomberg. ‘It turns out there aren’t that many suitable properties available.’
John Longworth, of the campaign group Leave Means Leave, said: ‘London has an enormous gravitational pull on financial services. The City is miles ahead of Europe.’
May 14th, 2017: This is money