It so happened that a friend invited me to his flat in Canary Wharf, the financial district in east London that has become the alternative to the City for many businesses since the 1990s. For half what she would have paid in a more exclusive or popular area of town, she had a large room overlooking the Thames. All around imposing skyscrapers with more than three hundred shops, eight supermarkets and almost seventy bars and restaurants. And yet…
The owners of Canary Wharf Group (CWG), Canadian fund Brookfield and sovereign wealth fund Qatar Investment Authority are struggling these days to revitalize a neighborhood that has always lost its soul once offices are done for the day. 120,000 employees come to work every day at the old docks where fruit and vegetables once arrived from the Canary Islands (hence the name). The population is 3,500 spread over half a million square meters.
The pandemic brought with it telecommuting, which has taken root more in a sector like finance than in other industries. Personal working hours in Canary Wharf often extend from Monday to Thursday. How to bring this entire urban complex back to life for the rest of the week?
Bank HSBC dealt the latest blow when it announced its intention to vacate the 45-story skyscraper at 8 Canada Square where it had occupied for two decades and move its London headquarters back to the historic City. This will be in 2027 when the lease ends. It will be in a building in front of the San Pablo Cathedral, with an office space barely half the size of the current one. The ability to work from home, the automation of many tasks, and downsizing have made the move viable despite the new higher rent. Previously, the law firm Clifford Chance announced a similar transfer decision.
CWG is heavily indebted and its situation is being exacerbated by the sharp rise in interest rates. But both owners have enough muscles to withstand the pull. The problem is more existential than economic. In recent years, numerous green spaces have been created in the area to make it more livable. It has the largest collection of contemporary urban art and the latest goal is to transform the area into a center of scientific development. Genomics England or Barts Health NHS Trust have already opted to join Europe’s largest life sciences campus.
Surroundings made of paper mache
The new Elizabeth Line transit service reaches Canary Wharf and the number of people using public transport to reach the area has increased by 40%. Almost 97% of the commercial space is occupied. Most of these are found in the vast underground galleries that connect the skyscrapers. The problem, according to real estate development experts, is that both shops and restaurants are close to the area’s work activities. From seven in the evening, during the week and at weekends, the noise disappears. Above all, Canary Wharf has an artificial feel to the social or cultural life with authentic pubs and neighborhood atmosphere that other areas of London offer.
In theory, all the necessary services can be reached in the area. In fact, 3,500 residents may seem small, but that represents an acceleration from zero four years ago. And yet…
You can see the correspondent’s most recent letters here
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