Canary Wharf Group Leads in Leasing Over 250,000 Square Feet of Office Space in 2022
Canary Wharf Battles High Vacancy Rates with Multi-Faceted Strategy
Canary Wharf, a financial district in London's Docklands area, is facing a record 18.6% office vacancy rate. However, this hasn't deterred businesses from committing to space there. Companies such as Barclays, Citi, Fitch, JP Morgan, Morgan Stanley, Revolut, and UCL have already recommitted, and potential tenants like Visa are considering leasing significant space.
The area's attractiveness remains due to its excellent connectivity, with the Jubilee Line, DLR, and Elizabeth line all serving the location. Canary Wharf has also leased 250,000sq ft of space this year.
To combat the high vacancy rates, Canary Wharf Group (CWG) is employing a multi-faceted strategy. This includes tenant diversification, repurposing of space, improved amenities, and 'place-making' to attract businesses and visitors.
CWG is encouraging the development of multi-use spaces like housing, retail, hospitality, and new types of businesses such as life sciences. The completion of 17 Columbus Courtyard is expected to provide approximately 200,000 sq ft of new laboratory space for late-stage start-ups and established companies in 2026.
To enhance place-making, CWG has invested heavily in over 300 restaurants and shops, a growing hotel sector, and cultural amenities. This diversification of uses supports a 24/7 environment, helping sustain the area economically while making it more attractive to new business and talent.
CWG is also offering premium, sustainable office environments to respond to the hybrid work trends encouraging companies to relocate to smaller, more central locations. SmartestEnergy will lease 20,000sq ft at 7 Westferry Circus, and Banco Bilbao Vizcaya Argentaria (BBVA) will extend their office footprint to 60,000 sq ft and lease until 2035 at One Canada Water.
Tarun Mathur, director of office leasing at CWG, described Canary Wharf as a "vibrant mixed-use destination". He believes that the area provides a "best-in-class environment" for work, visits, and living.
This strategic approach seems to be working, as Canary Wharf Group's office buildings shed £180m in value in 2024, indicating a stabilization in the market, although they lost almost £1bn the year before. This suggests that Canary Wharf is well on its way to becoming a thriving mixed-use financial and cultural hub, supporting long-term economic resilience.
- Canary Wharf Group (CWG) is currently investing in various sectors, including housing, retail, hospitality, and new types of businesses like life sciences, to diversify its properties and attract more businesses and talent.
- The completion of 17 Columbus Courtyard is anticipated in 2026, providing around 200,000 square feet of new laboratory space for start-ups and established companies in the life sciences industry.
- Tarun Mathur, director of office leasing at CWG, stated that Canary Wharf offers a "best-in-class environment" for work, visits, and living, which supports its transition into a thriving mixed-use financial and cultural hub.
