The amount of empty offices in London's City financial district has risen by a tenth since the start of 2009, pushing the total amount of vacant space to more than 10 million square feet.
A report from broker NB Real Estate on Wednesday showed the total available City office space was now more than 10 million square feet for the first time since 2004 as more businesses downsize to cut rental costs following job cuts.
The available office space equates to about 37 of the iconic "Gherkin" building in central London.
NB Real Estate said City office rents fell by 9.5 percent last quarter to 47.50 pounds per square foot, but the fall in City office rents has been outstripped by an even faster deflation of rents in London's West End business district.
Rents in this area, once heavily populated by high-spending hedge funds, have fallen 11.8 percent to an average 75 pounds per square foot in the last three months, against a third-quarter 2007 peak of 135 pounds per square foot.
