Citigroup's announcement earlier this month that it would not immediately occupy all of its space in the Canary Wharf development has led to some market speculation that this may be a sign of the hard times awaiting the European office property sector.

With a softening economy, overall take-up of office property is less likely to occur, which could adversely affect office rentals going forward as well as deflate rental values, said an analyst at Dresdner Kleinwort Wasserstein.

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