The pyramid adorning the top of One Canada Square, the iconic tower in Canary Wharf, London, flickers faintly under the rainy sky. Right next door, a building adorned with the HSBC logo is only partially illuminated. The building assigned to Citibank is being renovated. At the foot of these blue glass worlds, some workers queue in front of a collection of food trucks.
“There are only people from Tuesday to Thursday, says Alex, a 39-year-old banker. Other days, it feels like working in a deserted concrete jungle. » Rosa-Maria, who runs a fresh pasta store, has chosen to adapt her opening hours. “I close at 2:30 p.m. because there is no one in the afternoon.”confess.
Canary Wharf, a financial district nestled in an inlet of the Thames, was created in the late 1980s at the initiative of Margaret Thatcher, who wanted to revitalize the old docks. Developed by Canadian real estate magnate Paul Reichmann, it was acquired in the mid-1990s by Canary Wharf Group, an entity owned by Qatar’s sovereign wealth fund and asset management company, Brookfield.
“There is no other example in Europe of a financial district dominated by a single actor”underlines Marie Dormeuil, real estate specialist at Green Street. Canary Wharf Group alone owns 47% of the buildings in this area, which represents an area of more than 715,000 square meters.
Development of teleworking
However, the group has recently encountered difficulties. In mid-September, the agency Fitch downgraded its debt rating to “speculative” category, fearing that it would have difficulty refinancing a debt of 4.2 billion pounds sterling (5 billion euros), part of which matures in 2025 and 2026. “The rise in interest rates in the United Kingdom has increased the cost of debt while causing a devaluation of its real estate assets”explains M.me Dormeuil. In 2023, the value of its property portfolio will lose £1.2bn, to £6.8bn.
In parallel, The company suffered an exodus. HSBC will abandon its 45-storey tower in 2027, in favor of a smaller office in the City. Law firm Clifford Chance will follow in 2028. Moody’s and Credit Suisse have also announced plans to withdraw, while Barclays and Citigroup will reduce their footprint. However, in March the vacancy rate was already at 15.2%, according to the real estate company CoStar.
Canary Wharf has been affected by the development of remote working since the Covid-19 pandemic. In London, employees spend an average of 2.7 days a week in the office, compared to 3.5 days in Paris and 3.1 days in New York. “This forced financial institutions to reduce their office space.says Peter Bishop, urban planner at University College London.. In this context, the city, a more lively and accessible district, seems to be a first choice destination. »
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