(Bloomberg) -- Bank of America Corp. is cutting some office space in its headquarters in Hong Kong’s Central district, according to people familiar with the matter, underscoring the headwinds for the city’s commercial landlords.

The bank is letting go one and a half floors in Cheung Kong Center, where its main office is, the people said, requesting not to be named because the matter is private. The company is moving staff in supporting roles to its back office in Kowloon Commerce Centre, where rents are lower, said one of the people. All the client-facing staff will continue to be based in the Cheung Kong Center office, the person added.

Bank of America declined to comment. The tower’s landlord, CK Asset Holdings Ltd., didn’t immediately respond to a request for comment.

The US lender joins its peers in trimming office space amid the industry’s cost-cutting efforts. Goldman Sachs Group Inc. gave up a floor in one of its offices in Hong Kong, Bloomberg News reported last month.

Diminishing demand from international banks is weighing on the commercial rental market. The banking and finance sector made up 18% of new leases by floor area in 2023, down from 29% in 2022, according to CBRE Group Inc.

Hong Kong’s vacancy rate rose to an unprecedented 16.4% at the end of 2023, CBRE data show. Grade-A office rents could fall as much as 10% this year after slipping 6% in 2023, it estimates.

--With assistance from Cathy Chan and Krystal Chia.

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