Major blow for Canary Wharf as HSBC set to leave headquarters and downsize to former BT base in sign of ‘pivot back to the City of London – which most financial workers prefer’ as number of in-office staff drops with post-pandemic hybrid working
- The bank intends to make the move in late 2026, according to a memo
HSBC has decided to leave its longstanding headquarters in Canary Wharf in favour of a much smaller office in the centre of the capital – with the move said to indicate ‘a pivot back to the City’ for workers.
Europe’s largest bank told staff its preferred option was to move from its east London base to the redeveloped former offices of telecoms firm BT, a development known as Panorama St Paul’s.
The bank intends to move in late 2026, a memo seen by Reuters says.
The switch will be seen as a blow to the Canary Wharf financial district, where a 45-floor skyscraper has been HSBC’s home for more than 20 years.
This comes as 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 since the Covid-19 pandemic.
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.’
Canary Wharf’s financial district, east London, – pictured are HSBC and citi bank
The 45-floor skyscraper in Canary Wharf has been HSBC’s home for more than 20 years
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
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 move by HSBC to the City of London historic financial district further solidifies the City’s reputation as a prime destination for financial services firms, the district’s policy chairman Chris Hayward said.
The Times newspaper reported HSBC’s decision earlier on Monday.
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Canary Wharf Group runs the east London financial district and has been attracting more life science firms. The Canary Wharf Group did not wish to comment when contacted by the MailOnline.
It is understood that the HSBC building is owned by the QIA, Qatar Investment Authority, rather than the Canary Wharf Group.
MailOnline has contacted the QIA for comment.
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.
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