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The author is a property developer
Canary Wharf in London’s Docklands first launched in 1991 with a distinct vision to serve as a hub for banks and trading firms that could no longer fit in the City of London. Over the years, it successfully lured significant enterprises, leading to the development of millions of square feet of office space.
Subsequent expansions included a thriving underground shopping center and residential buildings. However, Canary Wharf lacks architectural appeal, quality, and street-level energy. In contrast, the City, which developed more organically, is a vibrant mix of diverse professions, cultures, and aesthetics. The Square Mile is more varied and capable of self-regeneration, making it more captivating and dynamic.
Canary Wharf currently faces considerable challenges. Companies are leaving for the City, which has grown increasingly enticing. Many large office tenants at Canary Wharf eager to move are constrained by financial ownership, long lease commitments, or the difficulty in finding suitable spaces in the Square Mile.
A dramatic overhaul is necessary. However, existing plans to convert high-rise buildings into mixed-use properties may not adequately tackle the core issue of decline. Reports indicate that plans for repurposing the HSBC building may cost £400mn to £800mn without significantly altering the local environment. The area feels lifeless and lacks the vibrancy characteristic of other parts of London.
Canary Wharf must reinvent itself as a community filled with elements of civic life, integrating seamlessly with the entire Isle of Dogs. It needs schools, playgrounds, healthcare facilities, entertainment options, and engaging ground-floor retail to enliven its streets and foster a sense of community. It should become a place where more people aspire to live, work, and enjoy their leisure time.
A successful transformation example is New York’s Financial District, which has evolved into a genuinely mixed-use area that continues to grow organically.
The revitalization of Canary Wharf should involve removing certain towers to create additional parks and partially demolishing others to increase sunlight and open spaces. Existing infrastructures, such as the car park beneath Canada Square, could be repurposed.
Canary Wharf has much to learn from the impressive decline and resurgence of other London areas like Shoreditch or the Southbank — both of which have become sustainable and desirable. Canary Wharf should aspire to become the greenest region in the UK capital with the lowest pollution levels. A visionary landscape architect could redesign street spaces and building facades to create a new atmosphere. Roads could be transformed into green havens by moving traffic underground, enhancing the area’s appeal.
Nonetheless, the true challenge lies in financing this transformation. Construction costs are on the rise, and prices for good-quality (but not prime) office space in central London have dropped about 30 percent since the first quarter of 2022, according to research from Green Street. It estimates that net effective rents for properties in Canary Wharf, excluding super prime options, have fallen by 20 to 25 percent during the same period. Overcoming these hurdles requires highly skilled developers and investors willing to commit to seemingly unattractive vacant spaces.
Across the estate, more than one-fifth of offices are vacant, with projections indicating over 4 million square feet will become unoccupied in the next five years. Canary Wharf Group owns only 13 of the 32 buildings, so a unified strategy for the entire estate is needed, which is challenging to achieve.
The future of Canary Wharf depends on its capability to transition into a more diverse, vibrant, and sustainable urban area. It should balance the demands of businesses, residents, and cultural activities, offering robust amenities at affordable prices. While Canary Wharf retains significant potential as a key commercial hub, its future success hinges on a bold and dramatic transformation. It must reshape its identity and alter perceptions to become a genuinely active contributor to London’s contemporary urban landscape.
We must preserve Canary Wharf — especially considering the billions already invested in infrastructure, which ensures excellent transport connectivity. Moreover, there are substantial tax incentives provided to the project over the years that must justify sound investments. Canary Wharf’s primary stakeholders, the Qatar Investment Authority and Brookfield, possess the financial capacity to facilitate this transformation. However, if they choose not to invest, it remains unclear who will.