HSBC has announced plans to depart from its Canary Wharf tower, possibly returning to its roots in the City of London by 2027, coinciding with the expiration of its existing lease.
This relocation comes after two decades and is part of a larger plan to reduce office space in the wake of the Covid-19 pandemic, as HSBC embraces the era of flexible work arrangements.
The banking heavyweight is reportedly in talks for a new lease on the former BT headquarters near St Paul's Cathedral.
The proposed new space, part of the Panorama St Paul's project, is expected to be much smaller than the existing 45-storey HSBC tower that accommodates around 8,000 employees.
HSBC stated the new location "is being conceptualized with a focus on promoting well-being and will be built to achieve top sustainability standards using primarily recycled materials".
Previously, HSBC had moved its headquarters to Canary Wharf in 2002 from other locations within the City of London.
The bank's decision to return to the historical financial hub of the city signifies a "massive endorsement for the City," according to Chris Hayward, policy chairman at the City of London Corporation.
HSBC's decision came in the aftermath of the pandemic, when it announced a global reduction of office space by roughly 40% to cut costs, save energy, and facilitate remote working for more employees.
Noel Quinn, the Chief Executive, believes that traditional five-day office weeks are no longer necessary and that HSBC executives spend a considerable amount of time traveling to various global locations throughout the week.
HSBC revealed that discussions about the relocation began after a review of its future location last year. It hopes the new office will foster "digital innovation" and help it achieve net-zero carbon commitments.
The fate of HSBC's current tower, owned by Qatari investors, is yet unclear.
Canary Wharf Group, the owner and operator of the area, has not responded to HSBC's relocation plans but pointed out that the region has seen increased diversification in recent years, with a growing presence of health and life science firms and a burgeoning residential population.