As big tenants depart or downsize, London’s Canary Wharf faces pressure to stay attractive

[LONDON] Canary Wharf, the real estate investment trust that owns numerous skyscrapers in London’s docklands, is under pressure as several key tenants including HSBC have decided to move out or downsize.

The bank recently announced that it will relocate its Canary Wharf headquarters to the City of London, where it will occupy space that is roughly half the size it enjoys today. For more than 20 years, it has been in a 45-storey tower.

Property analysts say this massive relocation – due to take place in 2027 and likely to the former headquarters of telecommunications group BT, near Saint Paul’s Cathedral – is a clear sign that London’s office market is in a cyclical decline.