Barclays PLC (LSE:BARC) has inked a deal which will see the bank remain at its Canary Wharf headquarters until 2039.
Changing working habits since the pandemic has hit demand for physical office space, meaning the agreement marks a boost for Canary Wharf.
HSBC Holdings PLC (LSE:HSBA) laid out plans to move from Canary Wharf earlier this year. The bank is due to ditch its 45-storey tower for a smaller site in 2027.
Barclays will remain in its 32-floor tower at One Churchill Place address but announced £260 million would be paid to give up tenancy at 10 Cabot Square, which the bank has been subletting since April.
“Canary Wharf is a fantastic place to work and our five-year lease extension at One Churchill Place is a testament to that,” chief operating officer Alastair Blackwell said.
“I am pleased we have reached this agreement with Canary Wharf Group which delivers a long-term cost saving for the bank.”
Canary Wharf Group has faced struggles as the likes of law firm Clifford Chance and Credit Suisse have this year joined the growing list of companies planning to exit the area.
Shareholders had been required to give Canary Wharf Group a £400 million cash injection earlier this year as a result.