Canary Wharf Office Values Fall £180M Amid Remote Work Impact

Canary Wharf’s office buildings have seen a further decline in value, with nearly £200 million wiped off in the past year as the district struggles with the impact of hybrid and remote work. Office occupancy rates dropped from 91% to 88.2%, contributing to a 9.3% fall in rental income. High interest rates, a sluggish property market, and global political uncertainties have exacerbated financial challenges, prompting several major tenants, including State Street, HSBC, Moody’s, and Clifford Chance, to relocate. Despite these setbacks, the rate of decline has slowed compared to the previous year, and some firms such as Citi, Morgan Stanley, and Barclays have chosen to remain. Canary Wharf Group is now investing in green spaces, residential units, and a new life sciences tower to diversify and revitalize the area. The group’s owners, Brookfield and Qatar’s sovereign wealth fund, have also pledged significant new funding to support these efforts.