COMMENT News of HSBC’s planned departure from Canary Wharf might seem a major blow to what many would consider London’s second financial district – a picture painted in the 1980s when it was created on the back of Margaret Thatcher’s deregulation of the finance sector.
But beneath Canary Wharf’s image of tall office towers occupied by major banks, the estate is undergoing a transformation with a more diverse range of occupiers. Financial services now comprise 52% of its tenants compared with 90% 20 years ago. It is becoming a major life sciences hub, attracting tenants such as Barts Health NHS Trust, Genomics England and sector start-ups alongside tenants such as Revolut, Thomson Reuters and Apple.
The estate is also becoming more balanced: as well as more than 350 shops, cafés, bars and restaurants, it has attracted 3,500 people who now call it home, which is set to grow to 5,000 over the next two years. However, perceptions often take longer to change than reality.
Greener spaces
For those willing to keep an open mind, Canary Wharf now offers a great mix of local amenities, as well as vastly improved accessibility now the Elizabeth Line is finally here.
Recent research from CBRE Investment Management and Placemake.io found that while areas with a mix of offices, retail and leisure are seeing pre-pandemic levels of commuters travelling, those with a higher density of offices are continuing to see some of the lowest passenger numbers.
For workers today, it’s all about balance: as home lives and work lives have converged, people want more from their workplaces, including having easy access to shops, F&B, entertainment, culture and green space.
Evidencing Canary Wharf’s transformation into a mixed-use area, TFL data found station footfall there is now exceeding pre-pandemic levels. Furthermore, visitor numbers reached a record high of more than 54m in 2022, while visitor numbers up to the end of June this year are 40% higher than the first half of last year.
Last year, Canary Wharf Group announced a partnership with the Eden Project to create a 20-acre, green spine running through the centre of the estate, as well as a network of green spaces, parks, waterside and performance areas, bridges and boardwalks. This will add to an already significant culture and lifestyle offering, and there are many other opportunities for sports and leisure activities.
Buildings such as YY London, our new scheme that completed at the end of June, reflect the changing nature of Canary Wharf. Replacing the former Thomson Reuters building, this highly sustainable BREEAM Outstanding scheme has used the existing foundations of the former building while creating a modern, curved façade. Occupiers here will benefit not only from the amenities on their doorstep, but will also have within the building a juice bar, restaurants, a multi-purpose space for yoga, events and other activities, and a 7,000 sq ft rooftop garden.
More balanced
The saying goes that all work and no play makes Jack a dull boy. With its predominance of office space, tenant make-up of professional and financial services companies and a lack of focus on public space and experience, Canary Wharf was once at risk of being a dull boy. But now the area is shaking off that reputation: residential schemes such as One Park Drive and Newfoundland, coupled with a broader retail and leisure offer, have made this a much more balanced community.
Rather than just nodding to sustainability, culture, experience and public realm, it is leading the way in these areas; and these factors, coupled with new transport links via the Elizabeth Line, have led to Canary Wharf becoming a place to live and hang out as well as an exciting and good value option for businesses from a range of sectors.
The built environment is constantly evolving in response to the economy, altered tenant priorities and changing lifestyles. The nature of leases means an area’s tenant mix will change over time, but places offering good connectivity, a strong amenity mix and good-value space in sustainable and high-quality buildings will retain their appeal.
Tristram Gethin is a founding partner of Quadrant Estates
