Moody’s Quit Canary Wharf

Moody’s is the latest, in the financial services sector, to vote with their feet in regard to Canary Wharf.  The credit rating agency confirmed it is taking space at 10 Gresham Street, subject to final terms, and will move in 2026, when its lease at One Canada Square expires.

This departure, after more than 15 years, follows closely HSBC’s decision last summer to also vacate One Canada Square in favour of the square mile.  HSBC had been in occupation since 2002.

Whilst Canary Wharf’s large towers have fallen out of favour, with a number of tenants recently, others have committed to stay.  Barclays are staying put until 2039 and Morgan Stanley are also expected to confirm allegiance shortly.  Potential new tenants include Revolut.

Although a couple of years off, this departure will add another six floors to the current seven floors vacant in the 50 storey tower.  Canary Wharf has been pushing to diversify its estate and mitigate its reliance on office occupiers.  It has added life sciences tenants, and built out its retail, leisure and hospitality portfolio. On positive points, the number of visitors to the district has increased, and the estate now includes thousands of housing units.  Earlier in March, UK chancellor Jeremy Hunt announced Canary Wharf Group would receive a £118mn loan, from a government housing infrastructure fund, to support developing a life-sciences centre, a healthcare diagnostic facility, and build up to an additional 750 homes.

Canary Wharf’s owners Brookfield and the Qatar Investment Authority announced a £300mn equity infusion and a £100mn revolving credit facility for the company in October.