Canary Wharf is set to lose a major financial occupier as Bank of America prepares to consolidate into Merrill Lynch’s 700,000 sq ft City HQ.
The move will bring 350,000 sq ft at 5 Canada Square, E14, to market, boosting the vacancy rate in Canary Wharf to 6%.
That figure will increase further when Morgan Stanley exercises its break option on 345,000 sq ft of offices at 20 Cabot Square next February.
According to Knight Frank, there is currently 550,000 sq ft of empty space in the 13.5m sq ft east London estate, reflecting a vacancy rate of 3.9%.
A spokesman for the bank, which merged with Merrill Lynch in January, said that it had no “immediate” plans to move to 102 Newgate Street, EC1.
However, sources close to BoA said it would largely complete the move by the year-end, although a few staff may remain.
BoA’s lease at 5 Canada Square expires in 2012.
The BoA spokesman added: “We are currently evaluating the optimum long-term interests for the company and in the interim have made some moves between our offices to maximise business efficiency.”
The space could attract the interest of Japanese bank Nomura. It is currently deciding whether to consolidate its staff in the City or Canary Wharf.
Nomura owns its 275,000 sq ft HQ at St Martin’s Le Grand, EC1, and also took on Lehman Brothers’ lease at 25 Bank Street, E14, after buying the bank’s European arm last October.
It is expected to decide on its requirement of up to 500,000 sq ft by the summer.
Jones Lang LaSalle advises BoA; Drivers Jonas acts for Nomura.
