HSBC's move to new London headquarters was one of those much-talked-about landmark deals that the market needed to finally happen, and as the largest office move in London in six years a worthy winner of CoStar's lease deal of the year for the capital.
The bank is relocating from the more than 1 million square feet it had occupied in Canary Wharf for more than two decades to 556,000 square feet at Panorama, 81 Newgate Street at the former British Telecom head office in the City of London.
The relocation, expected to take place in 2027, is a major reduction in space, but it is still a huge commitment.
At a blended rent of around £87 per square feet, it showed occupiers are moving again in the capital after the pandemic paralysed decision-making. It also suggests they are prepared to pay handsomely for the best space.
About the Project: Orion Capital Managers and Pella Real Estate Partners are redeveloping the site at Panorama St Paul's to improve its environmental credentials and offer roof terraces as well as 556,000 square feet of offices. Tejat V Lux bought 81 Newgate Street from BT in August 2019 in partnership with Orion Capital Managers.
What the Judges Said: "For me this is the worthy winner as not only is it a huge letting but the rental tone achieved is game changing for the capital. It therefore has the biggest impact and a worthy winner. " - Shaun Simons, founder, Compton while James Finnis, head of UK agency at JLL, tipped the deal for "HSBC taking a long term commitment, with sustainability at the heart of the deal, repositioning an existing asset".
"Significant retention within London of a major entity. ESG at the heart of the building. Quantum of sufficient significance to make this the winner among good competition, " added Guy Bowring of USP.
They Made It Happen: James Meikle, head of occupier representation, Cushman & Wakefield; Isla Stevenson, senior surveyor, Cushman & Wakefield and Sioned Treloar, partner, Cushman & Wakefield.
