JPMORGAN: Your next finance job could be in Madrid

People hold banners during a 'March for Europe' demonstration against Britain's decision to leave the European Union, in central London, Britain July 2, 2016. Britain voted to leave the European Union in the EU Brexit referendum.

REUTERS/Neil Hall

Brexit is testing the nerve of banks based in London.

Questions of when and how the UK will exit the European Union, and of what will become of banks' ability to passport services into the rest of the continent, have driven banks to reassess their London-heavy structure.

JPMorgan banking analyst Kian Abouhossein addressed these questions in a note sent to clients on Monday.

Abouhossein took a look at office rents and capacity in different EU cities, with Madrid coming out on top both for cost and supply.

Here's Abouhossein (emphasis ours):

"In terms of markets with high availability and high oncoming supply, Madrid places first, followed by Frankfurt and Paris."

"In terms of prime rental levels, Madrid is the cheapest (€27/sqm/month) although brokers note there is a lack of Grade A office space, followed by Frankfurt (€40/sqm/month) and Paris (€67/sqm/month)."

Here's how the cost compares with other cities vying for London's financial crown:

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REUTERS/Neil Hall

And the Spanish capital also tops the list for percentage of vacant offices:

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REUTERS/Neil Hall

Madrid is also seeking to become the new home to the London-based European Banking Authority, according to a report in the Financial Times.

While office-space cost and quantity aren't the only criteria that investment banks will be looking at, it is likely that a lot of banks will follow the EBA wherever it goes.

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See Also:

• The FTSE 250 is close to erasing its post-Brexit losses

• Brexit just forced the IMF to cut its growth forecast for Britain's economy

• LEAVING LONDON: Confidential Brexit briefing shows where Deutsche Bank thinks other banks will go

SEE ALSO: A US property giant is planning a £1 billion post-Brexit spending spree in London