La Salle Investment Management has pulled out of taking one floor at Hermes Real Estate's 20 Gresham Street in the City of London.

The company was under offer at the building but is thought market conditions may have influenced its decision.

It will be a further blow to the City market which is nearing the brunt of the credit crunch.

Much of 20 Gresham Street however is already let to Standard Bank which is taking around 152,000 sq ft of space.

Jones Lang LaSalle and DTZ are letting agents for 20 Gresham Street.