Recent decisions by banking giant HSBC and law-firm Clifford Chance to relocate from their long-term home at the high-profile Canary Wharf office complex and move to the City of London have ratcheted up debate about the Docklands estate's future and need to diversify its tenant base.
The pair are preparing to vacate just over 2 million square feet in total, prompting questions about how easy it is to find new occupiers in rapidly changing markets around the world, or how feasible it is to repurpose office towers in various countries for life sciences or as homes.
At 15.5%, Docklands, which was transformed into a thriving financial services district four decades ago, has one of the highest vacancy rates in London, following more than 1 million square feet of demand losses since the pandemic struck.
That is above the central London average of 9.1%, while vacancy rates are as low as 3% in some parts of the West End, and could rise as more large buildings complete construction.
CoStar's data reveals substantial availability and looming vacancy at many of the estate's iconic office buildings.
The best offices continue to see letting activity. Blackstone brought its Cargo building to market for sale last month after a highly successful leasing campaign.
The estate is diversifying its tenant base. Tech giant Apple leased a large space there during the pandemic. Genomics England and Kadans have both signed significant lettings over the past year as Canary Wharf Group positions Docklands as a life sciences hub.
Canary Wharf Group and Kadans Science Partner, the AXA-IM-Alts-owned real estate group, have gained consent for Europe's largest life sciences building, a 23-storey tower, at the site. The partners have recently completed a wet lab innovation and flexible workspace centre at 20 Water Street.
New buildings at the Wood Wharf estate to the east of Canary Wharf have brought forward major housing development. There are major residential towers at One Park Drive, 10 Park Drive, 8 Harbort Square, 8 Water Street and 10 George Street. There are also major apartment blocks at Newfoundland, on the west of the site.