HSBC Holdings PLC (LSE:HSBA) may downsize from its current headquarters, a Canary Wharf skyscraper, as the shift to flexible working continues to leave its offices unused.
According to news reports, the global bank is looking for a new headquarters of around 400,000-500,00 square feet, with the 45-storey tower it currently occupies totaling 1.1mln square foot.
Already close to ten floors have been left empty in the building in response to the bank's relaxed attitude to working from home, the Telegraph reported.
The tower in Canary Wharf is owned by Qatar’s sovereign wealth fund which agreed to lease the building to the FTSE 100 constituent in 2002. Now, with the agreement set to expire in 2027 HSBC could either move away to a smaller office in London or make renovations and reductions to the existing workspace in Canary Wharf.
HSBC is hoping to reduce its office space by 40% compared to pre-Covid levels, something it was already experimenting with pre-pandemic when it began renting more than 1,000 desks from WeWork.
Last year, the bank exited or downsized 77 of its office spaces.
Canary Wharf Group, the landlord of multiple skyscrapers in the banking district, has had to re-strategise since the pandemic in attempt to counteract the reduction of office workers.
New restaurants, bars and entertainment venues have opened in the district hoping to attract more tourists and families.
There are also plans to build lab space in the hope of luring life science companies to the area, chief executive of Canary Wharf Group, Shobi Khan, revealed.
HSBC opened trading today at 630p, up by close to a quarter compared to a year ago.