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As Morgan Stanley commits to Canary Wharf is the hub turning a corner?

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In return, the US bank is believed to have removed a break clause in 2028, effectively committing to staying its current 547,000 space until 2038.
In return, the US bank is believed to have removed a break clause in 2028, effectively committing to staying its current 547,000 space until 2038.

Morgan Stanley has agreed to stay in Canary Wharf for another 14 years, a welcomed boost for the development following a string of high-profile departures. 

The US investment bank has added over another decade to its lease, extending the agreement from its original end date of 2028 until 2038. 

The deal with Canary Wharf Group, which owns the building, is a major vote of confidence for the docklands hub after the exit of a number of star tenants left many questioning how attractive the area is for business. 

Iconic residents such as HSBC and magic circle law firm Clifford Chance have both said they will ditch the Wharf for a new location in the City. 

Canary Wharf office vacancies are expected to rise 16.6 per cent in the fourth quarter of 2024 up from 15 per cent in the same period last year. 

Shobi Khan, chief executive of CWG, said: “We are delighted Morgan Stanley is reconfirming its commitment to Canary Wharf to be a part of an extraordinary environment for the world’s leading and most innovative companies.

“Occupiers increasingly value Canary Wharf’s vibrant mixed-use neighbourhood for its excellent transport links, diverse leisure and amenities including access to 5km of water boardwalks and 16.5 acres of parks.”

He added: “In addition, with over 300 shops and 70 cafes, bars, and restaurants, there is a plethora of diverse retail and dining options.”

Four of the top six investment banks, including JP Morgan, Morgan Stanley, Barclays, and Citi, are still located in the area. The latter has commissioned a £100m revamp for its 42-storey tower. 

The region also houses two ‘Big Four’ accountancy groups, EY and KPMG.

Fintech Revoult is also located in Canary Wharf and is in talks to expand into the YY building.

Chris Beatty, Morgan Stanley’s EMEA COO, said: “Canary Wharf has been the location for our EMEA headquarters for over 30 years, and we’re pleased to be extending that tenure.

“The Wharf is a great place to work and we’re looking forward to witnessing the next stages of Canary Wharf’s evolution first hand.”

A taxpayer loan of over £118m has also been handed to Canary Wharf to help elevate its life science offering and build new homes.

As part of the Spring Budget, Chancellor Jeremy Hunt said the loan would help “accelerate delivery of the Canary Wharf scheme.”