Barclays in talks to shrink London office space amid cuts
Barclays Plc, the lender cutting about 1,200 investment-bank jobs, is in talks to sublease office space London's Canary Wharf financial district to the UK government, three people familiar with the talks said.
The bank may lease about 300,000 square feet (27,900 square meters) of space at the 10 South Colonnade building to the government, the people said, asking not to be identified because the talks are private. A spokesman for Barclays, whose main headquarters is at the 1 Churchill Place tower in the same district, declined to comment. The government regularly evaluates proposals from the market, but doesn't comment on any commercial negotiations, a spokesman for the Cabinet Office said.
Barclays Chief Executive Officer Jes Staley wants the bank to reduce the amount of real estate it owns and leases this year to generate "tremendous savings," he said on March 1. Rents for the best space in Canary Wharf were about 45 pounds a square foot at the end of last year, compared with 70 pounds in the City of London financial district, according to data compiled by broker Colliers International Group Inc. The UK plans to save 2b pounds over the next 10 years by selling underused historic buildings and moving workers to less expensive office space.