HSBC is planning to ditch its massive Canary Wharf headquarters for a smaller office in the City of London.
The banking giant will up sticks from the 45-floor skyscraper, which has been dubbed the ‘Tower of Doom’ by some staff, towards the end of 2026.
The rise of home working following the pandemic has left swathes of empty desks in offices in towns and cities around the world, including the UK.
With many firms seeking less space, HSBC is aiming to move to Panorama St Paul’s, the redeveloped former offices of telecoms group BT in the Square Mile.
‘Panorama offers a modern office environment in the City, well-connected to major transport links and amenities,’ the bank said.
Downsizing: HSBC is to leave its 45-floor Canary Wharf skyscraper (pictured) – which has been dubbed the tower of doom by staff – towards the end of 2026
HSBC shares rose 0.3 per cent, or 1.9p, to 604.1p.
The decision is a huge blow to Canary Wharf, where HSBC has been based since 2002 when it corralled its retail, business, corporate and investment bankers into the tower from various offices across London, at the cost of nearly £1billion.
Officially known as 8 Canada Square, the towering steel and glass edifice was designed by British architect Norman Foster, the brains behind other notable London landmarks including ‘The Gherkin’ skyscraper in the City.
His company also designed Apple’s sprawling headquarters in California, US.
The HSBC tower houses around 8,000 employees across nearly 1.8m square feet of office space.
The bank’s new site in the City is a 556,000-square- foot premises.
In 2007, HSBC sold the tower to Spanish property firm Metrovacesa in a deal that made it the first building in Britain to fetch more than £1billion.
The bank bought the property back in 2008 when Metrovacesa faced financing issues during the global recession.
It was then sold in 2009 to a South Korean pension fund before being acquired by its current owner, the Qatari government’s sovereign wealth fund, in 2014.
But the bank’s shift to Panorama comes as firms look to cut back on their real estate costs. The rise of home working means staff are spending less time in the office.
In 2021, the bank’s boss Noel Quinn scrapped an executive floor on the 42nd floor, claiming it was ‘empty half the time’ as HSBC bigwigs frequently criss-crossed the globe to manage its operations.
The news of the move was greeted with elation in the City and touted as a sign of the Square Mile’s ongoing status as a major global financial centre.
‘HSBC’s decision to return here to the heart of the City of London is a huge vote of confidence,’ said Chris Hayward, policy chairman of the City of London Corporation.
‘This move further solidifies the City’s reputation as a prime destination for financial services firms. We are confident that HSBC will thrive and find great success.’
But the decision is likely to raise further questions about the future of Canary Wharf as owners – the Qatar Investment Authority and Canadian asset manager Brookfield – look to wean the area off its reliance on major investment banks amid a drought of global dealmaking.
Several projects are being drawn up to broaden its appeal, including plans for an 820,000-square- foot laboratory tower, which is designed to lure life sciences companies to the area.
There are also proposals to build student accommodation and residential flats as well as revamp the Middle Dock area of the site to introduce more green space and leisure areas to attract recreational visitors.
