Cutbacks by capital markets firms in London are hitting the data centre market says real estate agency CB Richard Ellis, which reports zero corporate take-up and "abnormally low" activity in the first quarter of 2008.
CBRE ascribes the dip in a normally buoyant market to uncertainty in the financial services sector as IT budgets come up for review.
Andrew Jay, head of technology practice group, CB Richard Ellis, comments: "This has been the lowest quarter for take-up in London since the emergence of the corporate market in 2004. London has been significantly affected by the current financial climate due to the large number of financial services companies in the market."
In contrast to London's woes, the Frankfurt market had an excellent first quarter, says Jay, with take-up of 11,180 sq metres. Paris and Madrid also showed signs of resilience, while the market across Europe was down only four per cent on the equivalent period last year.