However, Miles Gibson, head of UK research at CBRE, told a MIPIM audience last week that following the post-Brexit pause, values had stabilized. “The picture wasn't half as bad as people feared” through year-end 2016, Gibson said, adding that sales data for January and February of this year showed further improvement.

Deutsche Bank's commitment to London follows recent moves by other international financial firms in favor of the UK's largest city. Credit Agricole SA opted to extend its existing lease until 2025, and Bloomberg reported last fall that ING Groep NV plans to move as many as 60 trading jobs from Amsterdam to London.

Deutsche Bank

LONDON—Land Securities Group Plc has confirmed published reports that it's in talks with Deutsche Bank for a newly-built headquarters in London's City district. The news marks the latest affirmation of the UK capital's standing as a financial center in the aftermath of the Brexit vote.

According to a statement from the developer, negotiations with Deutsche Bank could take several months and there's no guarantee they'll lead to a transaction. The bank's new London headquarters would be built at Land Securities' 21 Moorfields development site and would necessitate changes to the existing plan for the 1.9-acre parcel. Land Securities acquired the 21 Moorfields site in February 2015 and currently plans a two-building mixed-use development there.

“The move underlines the bank's commitment to the City of London and the importance it attaches to being an employer of choice in the capital,” Garth Ritchie, Deutsche Bank's UK CEO, wrote in a memo to employees, according to Bloomberg Business. “It will advance the bank's strategic goals of increasing efficiency, reducing complexity and strengthening links between the business divisions and infrastructure functions.”

Bloomberg's report comes a little less than a week before UK Prime Minister is scheduled to trigger Article 50 and begin formal negotiations with the European Union about an exit from the EU. The surprise results of the referendum on whether to remain in the EU raised questions about London's long-term viability as a financial center and led to a dropoff in pricing and volume for commercial property sales in the UK.

However, Miles Gibson, head of UK research at CBRE, told a MIPIM audience last week that following the post-Brexit pause, values had stabilized. “The picture wasn't half as bad as people feared” through year-end 2016, Gibson said, adding that sales data for January and February of this year showed further improvement.

Deutsche Bank's commitment to London follows recent moves by other international financial firms in favor of the UK's largest city. Credit Agricole SA opted to extend its existing lease until 2025, and Bloomberg reported last fall that ING Groep NV plans to move as many as 60 trading jobs from Amsterdam to London.