Canary Wharf has been dealt another blow after Moody’s became the latest major firm to consider leaving the financial district to cut costs.
The credit ratings agency, which has space for 1,200 employees in its Docklands office, is planning to shrink its footprint by a third in response to the rise of WFH.
It comes hot on the heels of HSBC, Europe’s largest bank, deciding to leave its home of 20 years at 8 Canada Square for a smaller space in the City of London.
Major law firm Clifford Chance announced it was leaving Canary Wharf last year, while Barclays has put 500,000 sq ft of space at its Docklands office on the market.
Credit Suisse is also trying to let empty space at its Canary Wharf headquarters, with the top nine floors on the market.
A quiet Canary Wharf this morning. The financial district has been hit by the slump in commercial real estate following the pandemic
Canary Wharf bustling with office workers in 2011
Moody’s, which is based in the area (seen today), is planning a move to elsewhere in London
Moody’s has appointed broker Cushman & Wakefield to advise on new locations for its London office, the Telegraph reported.
However, the US firm’s departure from Canary Wharf is not certain and may be open to shrinking its office at One Canada Square or moving to a smaller space in the district, according to the newspaper.
The commercial real estate market has struggled to bounce back globally after many office workers have kept working from home at least some of the week.
Canary Wharf has been particularly hit as an overwhelmingly commercial district that has a mixed reputation among workers.
In a reflection of its struggles, Moody’s recently downgraded Canary Wharf Group based on the ‘difficult operating and funding environment for real estate companies’.
HSBC intends to move in late, according to a memo seen by Reuters.
The switch was seen as a major hit to Canary Wharf’s status as a financial district and a ‘pivot’ back to the City of London.
Canary Wharf Underground station this morning. The number of office numbers dips substantially on Fridays, when many choose to work from home
Canary Wharf has been particularly hit as an overwhelmingly commercial district that has a mixed reputation among workers
In a reflection of its struggles, Moody’s recently downgraded Canary Wharf Group based on the ‘difficult operating and funding environment for real estate companies’
The drive towards home working has left major providers of office space in a difficult situation. Pictured: Canary Wharf Underground Station this morning
A senior City stockbroker told MailOnline: ‘This certainly suggests a pivot back to the City of London, which is a more cultural and historical area that most financial workers prefer.
‘I wouldn’t be surprised if we saw more consolidation towards the city due to a lower need for office space due to working from home.’
Panorama St Paul’s is a 556,000 square foot development featuring roof gardens overlooking St Paul’s Cathedral, according to the development’s website, and is substantially smaller than the tower HSBC currently occupies.
The bank began a review to assess its ‘best future location in London’ last year, according to reports, ahead of its lease expiring at Canada Square in early 2027.
The drive towards home working has left major providers of office space in a difficult situation.
It comes hot on the heels of HSBC, Europe’s largest bank, deciding to leave its home of 20 years at 8 Canada Square for a smaller space in the City of London
Before the impact of lockdowns, Office for National Statistics (ONS) data showed 12 per cent of people said they were able to work from home in 2019.
Then, 49 per cent of people were working from home at some point in the first six months of 2020 – before the most recent data from February this year showed 40 per cent of people were doing at least some work from home.
Other data released by the ONS in February found that 16 per cent of working adults reported working from home only and 28 per cent reported both working from home and travelling to work over the period of September 2022 to January 2023.
It said workers in the highest income band, those educated to degree level or above, and those in professional occupations were most likely to report home only or hybrid working.
HSBC told staff its preferred option was to move to the redeveloped former offices of telecoms firm BT, a development known as Panorama St Paul’s
