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Canary Wharf enjoys strongest year of office leasing in a decade

Canary Wharf Group’s Tarun Mathur on HSBC taking new space and how the estate is now a place for everyone – workers, residents and visitors

HSBC has leased more than 200,000sq ft at 40 Bank Street in Canary Wharf - image by CWG
HSBC has leased more than 200,000sq ft at 40 Bank Street in Canary Wharf – image by CWG

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Change is a constant.

Three and a half decades ago, no major international businesses called Canary Wharf home.

Since then, the towers built as part of the area’s regeneration from derelict, unused docklands have attracted and housed a vast range of companies and organisations. 

Predicting the demise of an area is a fertile activity for the generation of column inches.

However, it’s perplexing – at best – that the confident prophets of decline failed to spot the solid foundations the Wharf’s success over the last 25 years has been built on and the growth and strengthening of that infrastructure that has taken place more recently.

In reality there has been no pause in the Canary Wharf project.

Wood Wharf continues to attract new residents and businesses and North Quay with its vertical wet labs is also in the pipeline.

The latter is particularly significant for the ongoing diversification of the estate’s tenants.

While some firms have decided to move, this might sensibly be seen as natural churn in an area that other companies are increasingly eyeing as an attractive option.

Barclays, Fitch and Morgan Stanley have all recently recommitted to the estate. 

BBVA and Smartest Energy have both expanded their presence, while the likes the Bank Of London And The Middle East and McLaren Construction Group have arrived.  

It’s also a time of renewal, with refurbished and reimagined spaces frequently preferred to relocation away from the Wharf. 

Citibank is currently refreshing its headquarters in Canada Square, while Revolut – once a handful of employees at the estate’s tech community, Level39 – has claimed the upper levels of YY London, a freshly renovated building right outside the Jubilee line’s main entrance. 

With JP Morgan outgrowing its 25 Bank Street building and taking space in Credit Suisse’s former block, recent reports suggest the banking giant is looking seriously at restarting a project to build new towers on the western edge of Canary Wharf overlooking the Thames at Westferry. 

Then there are other incomers including challenger bank Zopa, Hershey’s, Hexaware, hVIVO and AviadoBio.

Did I mention Visa is also reportedly seeking space at One Canada Square?

All-in-all it’s proving to be something of a vintage year for leasing on the estate – especially given HSBC’s decision to rent some 210,000sq ft of space in Canary Wharf at 40 Bank Street making its relocation to the City in 2027 only partial.

Director, offices at Canary Wharf Group, Tarun Mathur - image by CWG
Director, offices at Canary Wharf Group, Tarun Mathur – image by CWG

HSBC retains a Canary Wharf presence

“It’s a real endorsement of what we’ve done over the last few years,” said Tarun Mathur, director, offices at Canary Wharf Group.

“That’s not just in terms of the quality of our buildings, but also the environment and the value that HSBC clearly sees in what’s being delivered here for their employees going forward.

“It’s been a fantastic year, with over 450,000sq ft of transactions – this is the strongest 12 months we’ve had for a decade – and a lot of that has been driven by existing customers expanding as well as new entrants.

“Digital bank BBVA, for example, did a major review of where they wanted to be, which focussed on Canary Wharf vs the City for their expansion. 

“For them, it was about value and amenity provision – their staff are really happy here and we’ve had an ongoing partnership with them.

“As a long-term owner of our assets, the ability to enable companies to scale here is hugely significant.”

Canary Wharf Group has seen vacancies fall to 6% across its portfolio, which includes 40 Bank Street - image by CWG
Canary Wharf Group has seen vacancies fall to 6% across its portfolio, which includes 40 Bank Street – image by CWG

right product, right time

For Tarun, the recent leasing successes are a combination of providing the right product and doing it in the right place.

He said: “Firstly the building has to work – value and workplace environment are key. In the case of Zopa, which is moving to Wood Wharf’s 20 Water Street, the bank found it really appealing.

“Businesses are now thinking about their workplace, not just within the four walls, but also the micro environment and how their employees can benefit from the ecosystem of Canary Wharf.

“The blue and green spaces we have here are as good as anywhere in London and then there’s the access to local amenities. As a package, occupiers are seeing that as immensely valuable.

“The Elizabeth Line is also a game-changer.

“It creates additional capacity alongside the Jubilee line and the DLR, as well as resilience.

“There’s been a bit of a time-lag, but the real estate office market is now benefiting from it as those advantages filter up to the level where occupiers make decisions and those claims are backed up by our footfall numbers.

“In 2024, 72million people came to Canary Wharf – that’s a stratospheric increase on 2019 and it’s a figure that’s forecast to be exceeded in 2025.”

a wider appeal

Tarun said there were a number of factors that were making Canary Wharf attractive to companies at present, not least the wider regeneration of east London.

“For some businesses it’s about the fact that the capital is moving east, so there’s a large, younger pool of talent that they’re looking to target within the radius of the estate,” he said. 

“It also goes back to what we’re delivering – a high quality product with the best workplace experience that meets the needs of our clients.

“There is constraint in the office market at the moment and that means organisations are having to be more open-minded about location.

“Some years ago, there was more of an insistence in some sectors that they stay as close to their existing buildings as possible. 

“We’ve seen a slight shift in that this year because of supply and demand of Grade A products.

“It’s exciting for the future because our existing stock is filling up.

“Our current vacancy rate is around 6%.

“We were around 10% about 12 months ago, so it’s come down quite significantly.

“Right now, it’s all about the buildings we’re getting back and how we can reposition those products for the next-generation occupier, so that’s where our focus is and it’s really exciting. 

“Then we’re looking at what we can do to integrate these towers better into the public realm than they were when they were designed 30 years ago.

“Back then occupiers wanted large, secure reception areas on the ground floor. Now they want them to be amenity rich with lots of vibrancy.

“Until you get the buildings back, there’s only so much you can do but our teams have done an amazing job activating the estate with arrivals such as the Troubadour Theatre coming later this year.

“I think in 10 years time we will see more permeability across the estate with links from building to building and a lot more engagement for workers, residents and visitors. 

“The ongoing process of diversification will continue but we’ll stay true to ourselves – tapping into new markets.

“We’ll see growth in the technology sector here alongside life sciences and financial services. 

“Canary Wharf is a place for everyone and we’re demonstrating that. It’s a long time since it was just a financial or business district.”

key details: commercial space available in Canary Wharf

Workspace at Canary Wharf is currently available at Level39, One Canada Square, 40 Bank Street, One Bank Street and The Columbus Building.

Find out more about the options here

Read more: Discover Greenwich Theatre’s revival of Jim Cartwright’s Two

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Canary Wharf: How Paws On The Wharf highlights and celebrates Guide Dogs’ work

Charity teams up with Citi, Canary Wharf Group, Wild In Art and the Canal And River Trust to create trail

Guide Dogs has placed a trail of 25 sculptures across the Canary Wharf area

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Kudos to Guide Dogs, Wild In Art, Citi, Canary Wharf Group and the Canal And River Trust.

The organisations have come together to create a pop-up trail of 25 sculptures, celebrating and raising awareness of the charity’s work.

Inspired by a London-based guide dog called Theia, each of the canine statues has been decorated by a different artist, forming a route that takes visitors across Canary Wharf as well as to West India Quay and Canary Garden.

“The Paws On The Wharf trail features sculptures scattered all over this area with a total distance of about 5km,” said Guide Dogs CEO, Andrew Lennox, at the launch event. 

“We’ve only just launched and we’re already seeing such great engagement and involvement with the public.

“People who see these sculptures are appreciating the art, but also learning more about the impact Guide Dogs has on people’s lives every single day and the artists behind the creations.

The sculptures can be found at West India Quay as well as in Canary Wharf and Canary Garden on South Quay

“We had Theia at the launch, who is a dog sponsored by one of our amazing partners Citi, which is also supporting the trail.”

Jackson Mendosa, chief of staff to Citi’s UK CEO, added: “Two things that make this trail stand out are accessibility and inclusivity, which are also concepts we believe we embrace as a firm through our staff and our business. 

“Guide Dogs was our charity partner between 2020 and 2022, with Theia the result of that relationship – but it was also the start of this initiative.

Paws On The Wharf’s first sculpture is just outside Citi’s offices and I’d like to thank everyone involved in the trail – it’s really something phenomenal.”

Key among those involved are, of course, the artists.

Sian Healey and Uri

Sian Healey created Guide Dog Adventures for the trail, which can be found near the eastern exit from Canary Wharf’s Crossrail Station.

She said: “I’m from Cardiff and I’ve been visually impaired since I was a child, due to a form of albinism that affects my eyes, hair and skin.

“I lose melanin slowly over time.

“I’ve always needed extra support and help throughout my life, whether that was with education or mobility and, eventually I applied for a guide dog, which now gives me independence.

“I had my first guide dog 15 years ago when my children were young and that opened up my world considerably.

“I had been pretty independent before when I was on my own – using my cane and hiding my disability as much as possible.

“But with young children you can no longer do that because you could be putting them in danger.

Sian’s postcard of London

“Once I had children, I had to accept how poor my vision was – how potentially dangerous simple tasks like walking across a road could be – and I had to reach out and accept help, because it was affecting my mental health too.”

Having donated artwork to Guide Dogs as a way of giving something back to the charity, Sian was invited to contribute a piece to the trail.

She said: “I submitted a few ideas which were developed and eventually accepted.

“Then, one day, Wild In Art delivered a big statue of a guide dog to my home and I was left with the paints.

“Uri – my current guide dog – didn’t like him at all.

“We had to cover the sculpture with a duvet most of the time. Uri wouldn’t go near him, even while I was working.

“I wanted my piece to be about being a guide dog owner and, of the 25, mine is probably the most realistic-looking.

“He’s in a traditional harness and has a nose that’s the same colour as Uri’s.

“Then I thought about what these dogs do for us and how I could depict that.

Sian’s postcard from Northern Ireland

“The main thing is to do with travel – getting out and about and doing things.

“So I thought of postcards of different places people had been with their guide dogs.

“The organisers wanted it to reflect all parts of the UK, so I have views from Scotland, England, Ireland and Wales.

“I also wanted it to reflect the diversity of what the charity offers, so there are different dogs on there – labradors, retrievers and a shepherd – with a variety of owners.

“I’ve always painted and drawn, although I did stop for a while.

“It started picking up again when I had my first guide dog, who helped me to get to art classes and build my confidence up.

“It’s something I’ve always loved doing, and my artwork is different from other people’s because of the way I see – it’s very blurry and abstract at times, because that’s the way my world is.

“I have no depth vision, so that’s why my paintings are a bit flat but very bright.

“I have to wear dark glasses and hats all the time because the light burns my eyes and I have no colouring in the back of them.

Sian’s postcard from Wales

“In certain lights I can’t see anything at all, but in other lights I can see quite well up to my nose.

“My sight is constantly changing and it’s not something I can depend on. 

“It’s quite a buzz to have a piece included in the trail.

“I hope Paws On The Wharf helps people understand that visual impairment is a spectrum, not just one thing and that this trail helps raise awareness.” 

Following the trail, the sculptures are set to be auctioned off to raise money for Guide Dogs.

This will take place at the Saatchi Gallery on June 5, 2024, with a limited number of tickets, costing £20, available on an application basis.

Prices will start at £2,000. Those interested in attending should in the first instance email pawsonthewharf@guidedogs.org.uk for more information.   

Guide Dog Adventures by Sian Healey can be found outside the east exit of the Elizabeth Line station at Canary Wharf

key details

The Paws On The Wharf trail starts in Jubilee Park and is available to follow from now until May 17, 2024.

Visitors can tour the sculptures at their leisure using either a digital or printed map.

A limited number of free, bookable, 90-minute multi-sensory tours – with priority spaces for people with sight loss and the option to request a sighted guide – will also be held on various dates during the trail’s run.

These will include both items to smell and touch. 

Find our more about Paws On The Wharf here

Read more: How St James’ Bow Green development is at one with nature

Read Wharf Life’s e-edition here

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- Jon Massey is co-founder and editorial director of Wharf Life and writes about a wide range of subjects in Canary Wharf, Docklands and east London - contact via jon.massey@wharf-life.com
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