Canary Wharf hit by financial crisis

Canary Wharf is facing the threat of rapidly emptying office blocks as big corporate tenants review their property needs after the wave of bank mergers triggered by the financial crisis. Nearly 2m sq ft of office space in the Docklands financial centre – or more than 10 per cent of the district – is in danger of being deserted as demand for new space falls across London.

Read article in Financial Times.

If rents were to fall to market-clearing levels, this would create new opportunities for businesses and the recession would not be unduly prolonged. But will they?