HSBC Looks to Halve London Head Office Space on Hybrid Work

HSBC Holdings Plc is looking for a new global headquarters that are around half the size of its current space in Canary Wharf, a stark illustration of how pandemic-driven changes to working practices are reshaping London’s office landscape.

(Bloomberg) —

The bank is considering a new head office of between 400,000 and 600,000 square feet, according to a person familiar with the matter. HSBC has been reviewing its workplace needs at its Canary Wharf skyscraper once its current lease ends in 2027, as it looks to cut office space by 40% globally compared with pre-pandemic levels.

Options being assessed include space in either the City of London or Canary Wharf, the person said, asking not to be identified discussing private matters.

The lender could also stay put and refurbish its existing tower as it looks to create a more flexible workspace. The lender moved into the 45-story 8 Canada Square in 2002 when it was completed by Canary Wharf Group. The building, one of the district’s tallest towers, is now owned by Qatar’s sovereign wealth fund.

Read More: HSBC Reviews Future of Canary Wharf Tower Under Hybrid Pivot

As firms adapt to remote and hybrid working patterns, a quarter of London businesses are downsizing office holdings and a further 18% are opting for coworking and flexible office spaces, a Bloomberg Intelligence survey found this month.

Canary Wharf Group, the landlord that owns most of the east London financial district, has been building apartments and increasing the number of restaurants, bars and entertainment on the estate as it attempts to reduce its reliance on banks.

A spokesperson for HSBC declined to comment. The Sunday Times reported the news earlier.

–With assistance from Harry Wilson.

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