HSBC Will Exit Canary Wharf, Set Up New HQ In An Effort To Reduce Real Estate Costs

HSBC Holdings plc HSBC looks to migrate its global headquarters to a smaller office in central London after its lease expires, joining the bandwagon of companies looking to pare retail estate presence.

HSBC has had its headquarters in Canary Wharf since 2002.

The bank looks to relocate to its new office in late 2026, zeroing in on Panorama St Paul’s in the City of London, a building formerly an office for telecoms group BT redeveloped by Orion Capital Managers, Financial Times cites an internal memo.

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HSBC said the move to a smaller, more central office would help it meet its net zero commitments and allow for flexible working. Qatar Investment Authority owns its current tower, which also co-owns Canary Wharf.

Lately, HSBC has shared its goal of cutting 40% of its global real estate costs.

In 2022, HSBC cut 110 support staff in Switzerland and scaled back its office space in Geneva due to clients withdrawing money from its private bank. It has also relocated its U.S. headquarters to a new Tishman Speyer-developed tower on the west side of Manhattan.

In 2021, HSBC CEO Noel Quinn ordered the conversion of the 42nd executive floor of the company's skyscraper in the east London into client meeting rooms and collaborative spaces. 

HSBC joined companies, including law firm Clifford Chance, and Societe Generale SCGLY, looking to downsize to more central offices to reduce their carbon footprint and adapt to hybrid working.

Office vacancies have risen in London from 5% in March to 9% in May, according to CoStar. However, they are exceptionally high in Canary Wharf, which had a vacancy rate of more than 10% in May.

Price Action: HSBC shares traded lower by 0.13% at $38.17 premarket on the last check Monday.