Morgan Stanley to stay in Canary Wharf in boost to struggling banking district
Morgan Stanley has decided to retain its flagship Canary Wharf office in a major boost for the struggling financial district, according to reports.
The American investment bank, which began looking for a new HQ in 2020, has decided not to activate an upcoming break clause on its base in London’s banking district, the Sunday Times reported.
The move comes after covid lockdowns and flexible working prompted the bank to review the need for such a large European headquarters. Its agreement with Canary Wharf included a break clause and the lender had mulled moving elsewhere as it weighed up downsizing from its 800,000 sq ft space spanning across two offices.
But the firm, which employs 4,600 staff in London, has decided against triggering that clause and will stay in the East London hub, according to the report. There is no indication as to whether it will consolidate its workers into one space or retain its current arrangement over two buildings.
A formal announcement on the move is expected in the coming weeks,the Sunday Times reported, in what will be a much needed shot in the arm for Canary Wharf Group, the developer which oversees the district.
The group has struggled as firms have re-evaluated their office arrangements to reflect the rise in flexible working.
Office vacancy rates at the Docklands hit 15.5 per cent last year, triggering a slide in valuations. The building previously home to collapsed US investment bank Bear Stearns was sold at a 60 per cent discount to its purchase price.
It lost HSBC, one of its flagship tenants, to the City in June last year, after the FTSE 100-listed bank chose to downsize from its 45-story tower in the wharf.
But as well as Morgan Stanley there have been other deals to suggest the group is turning a corner. Barclays agreed a five-year extension, albeit one in which it ditched its second office. And Citi is splashing out on a £100m refurbishment of its own skyscraper.
Morgan Stanley declined to comment. Canary Wharf Group was contacted for comment.