Barclays' 25% cut in London office space signals threat of glut

London

BARCLAYS Plc's decision to cut 25 per cent of its London office space highlights the growing risk that tenants will be in short supply for developers of buildings currently being constructed.

The lender is seeking to sublease offices in the Canary Wharf financial district to the UK government, according to two people with knowledge of the matter. They asked not to be identified because the information is private. It shows how space that was previously occupied can suddenly come back on the market as companies downsize, providing more competition than investors expected.