Canary Wharf: Transforming London’s banking district into a mixed-use destination

The way that people interact with the built environment has evolved. Canary Wharf has taken action to transform a once exclusively banking and finance dominated area into a mixed-use, vibrant destination for workers, residents, and visitors. In the first half of the year the estate saw record-breaking footfall volumes, totalling to over 35 million (+8% year-on-year). 

Changing office dynamics

According to CBRE’s 2024 European Office Occupier Sentiment Survey, to attract and retain talent, occupiers continue to look for accessible, amenity-rich, and ESG-compliant offices. Quadrant and Oak Tree launched YY London in June of this year, an office development that encapsulates these top-rated building selection criteria. YY London is 415,000 sq ft of prime office space, just metres away from the Elizabeth line. Wellbeing and ESG were at the forefront of the design, as well as providing high-quality amenities. YY London serves as an example that prime office space will remain a key component in the real estate composition of Canary Wharf. 

The survey also highlighted the desire for flexible office space options, and Canary Wharf offers a wide range, from hot-desking in the L39 community, to fully serviced offices. MadeFor, a platform which launched in Canary Wharf in February 2022, offers fully fitted and managed office space which can be tailored to each occupier. Flexible office space has increased in popularity in recent years, and the less traditional leasing structure attracts a diverse range of occupiers. 

Renewals and deals

In Q2 this year, Revolut secured a ten-year lease for 113,900 sq ft at YY London, establishing Canary Wharf as the location for their new global headquarters. There have also been major lease renewals from key occupiers that have been in Canary Wharf for the last few decades. Barclays has chosen to extend their lease until 2039 at One Churchill Place, keeping their 1m sq ft UK headquarters in the Wharf. Morgan Stanley have also opted to renew their lease on their 547,000 sq ft EMEA headquarters at 20 Bank Street until 2038. Fitch is the third occupier to follow suit and stay in their headquarters at 30 North Colonnade, where they occupy c.100,000 sq ft. These renewals serve as a significant vote of confidence for Canary Wharf.

Infrastructure and transport

The Elizabeth line now serves Canary Wharf, and since May 2023, the timetable has increased to 12 trains per hour in peak times, and the peak period has been extended to accommodate more commuters. Since last year, the Elizabeth line has seen a double-digit increase in passenger numbers, and the rail line has become the second-most used in the UK, ahead of the London Overground, by 13 million journeys. Access to public transport remains a key locational building selection criterion, and the Elizabeth line is proving to be a benefit to Canary Wharf and its residents, workers, and visitors.

New uses

CWG have also expanded into the life sciences sector, with a major state-of-the-art development in partnership with Kadans Science Partnership having started construction and expected to complete in 2028. The vertical campus will total 823,000 sq ft and will be the first of its kind, located at Canary Wharf’s North Quay. This partnership is indicative of CWG’s commitment to creating a multi-use environment that’s open to different types of occupiers.

ESG and community wellbeing remains a major focus for CWG throughout this diversification process. A partnership between CWG and the Eden Project has formed, resulting in the unveiling of the ‘Eden Dock’ just last month. This reinvented the public space throughout the Wharf and has the aim of improving the biodiversity of the area, as well as the health and wellbeing of people who work, live, and visit.

Retail and living

CWG has also brought new homes to the market in their residential development on the estate and continues to do so in creating 3,500 new homes through the mixed-use development, Wood Wharf. But they haven’t just built homes, and pledged to build more, but have also grown a community as the amenities and services on offer has expanded. Essential services such as supermarkets, medical centres, and schools that have been lacking in the past have taken their place in the area. Now the Wharf is not only a place to work, but it is also liveable.

Additionally, Canary Wharf Shopping Centre has blossomed, and over 120 well-known high street brands are present throughout the Wharf. In the first half of the year, 50 retail lettings were exchanged on the estate – including new tenants KIKO, Swarovski, and Next, and resulting in a retail and leisure occupancy of 95.7%. All of this, alongside the abundance of restaurants and acres of public space, has boosted the liveability of the Wharf which residents, visitors, and workers can take advantage of. 

Conclusion

Those areas that have achieved a successful live-work-play dynamic have captivated the post-pandemic workforce. Canary Wharf has implemented this with its residential, retail, and office space offerings, placing the area well to adapt to this structural shift in the market.