New kids on the block: Aggressive tech firms snap up more prime offices as banks downsize

Banks are downsizing to stay profitable.

Gone are the days when banks ruled the Central Business District. Technology, media, and telecommunications (TMT) firms are pushing banks out of their former turf, as more banks choose to downsize to remain profitable.

Analysts note that more TMT companies are moving into the CBD, snapping up offices formerly occupied by international banks. According to UOB Kay Hian, 2014 saw over 50% of new leasing demand from tenants in sectors like technology, media and telecommunications (TMT), energy and natural resources, as well as property. Demand from TMT firms like Booking.com and Linkedin more than doubled that of 2013.

A report by JLL showed that LinkedIn snapped up a 50,000 square feet office vacated by Barclays, while Facebook is looking to double its space and PayPal has transferred its international headquarters in the Lion City.

Meanwhile, Colliers reported that French bank Societe Generale is expected to give up their office space at One Raffles Quay in the Raffles Place/New Downtown micro-market to consolidate their operations at Marina Bay Financial Tower 1, after selling its Asian private banking arm to DBS in early 2014.