JPM's bid to let surplus offices

JPMorgan is to sublet a chunk of space at Canary Wharf in a bid to cut costs on its property holdings.

The banking giant is searching for tenants to occupy space that would have been used by Bear Stearns - the Wall Street bank that collapsed earlier this year and was taken over by JPMorgan.

It is leasing out 258,000 square feet at the building at a cost of around £10.5 million a year. Commercial rent prices have plummeted lately but agents insist Canary Wharf remains popular.

According to Property Week, Knight Frank has been directed to find tenants for the property at 5 Churchill Place.

In 2006, Bear Stearns took a 20-year lease on most of the space, paying a rent of only £40.50 per square foot.

Even though the property is well equipped, there are fears that Canary Wharf will struggle to find a new tenant because of the high vacancy rate.

Knight Frank points out that the vacancy rate is only 2%, much lower than the 8.4% found in the Square Mile.