Why is the new-look HSBC office tower full of holes?

Images showing the proposed redevelopment of the iconic HSBC office tower in Canary Wharf have been released. The CGI designs tell us a lot about what modern office space could look like in five year’s time.

The new design, from architects Kohn Pedersen Fox, shows that a large proportion of the building’s desk space will be replaced with trendy open green terraces and sport courts.

HSBC has occupied the building since 2001. Last August, the banking giant confirmed it would move out of the tower to a new, downsized office space in the City of London. Work is set to begin on the project in 2027, when the current HSBC lease expires.

Less work, more play

Since it was first built in 1999, HSBC headquarters has been a symbol of London’s central business district, and one of the most recognisable buildings in the Canary Wharf skyline.

The proposed redevelopment tells us a lot about modern office design. Crucially, the workplace will be less about work. Much of the desk space within the 45-floor building will be removed, in place of several, tree-lined roof terraces and balconies.

Building Design has previously reported that the tower building has 1.8m square feet of office space. The new design will see these dimensions lowered to 1.1m square feet, meaning more than a third of the building’s workspace capacity will be removed.

‘Mixed-use’ office space

It’s not hard to guess the motivation behind the HSBC building pivot. Post-COVID, remote working has exploded among office workers as employees prioritise home working.

This is evidenced by the number of commuters, which has fallen drastically since 2019 from 34% in 2019-20 to 13% in 2023-24. According to RailNews, commuters now account for fewer than one in eight passengers, compared with one in three before the pandemic.

With travelling to the office no longer a necessity for staff, building owners and councils are having to think creatively about how to entice workers back to the workplace. 

The result has been a shift towards ‘mixed-use’ buildings; a property that blends residential, commercial, and even entertainment uses into one space.

Shobi Khan, CEO of Canary Wharf Group, said, “This redevelopment is another step in Canary Wharf’s evolution into a vibrant mixed-use neighbourhood offering workspace, retail, homes, leisure and amenities all in one location – a true 15-minute city.”

Return to the office?

While an exact budget has not been released, it has been estimated that the revamp project will cost between £400m and £800m. It’s a substantial investment, but one that developers are willing to pay to increase office attendance and foot traffic.

Return to office (RTO) mandates are becoming more common as more businesses force staff back into the office to make the most of expensive rent and lease bills.

Even firms that are embracing remote work are getting on the trend. Fintech Revolut recently signed a lease with the YY London building in Canary Wharf. Alongside desk space, YY London also has showers, cycle parks, two restaurants, a cafe, and outdoor terrace space.

Smaller businesses are taking a more agile approach. They are signing up to serviced offices, in an effort to encourage in-person working on a more affordable contract.

Serviced offices, such as coworking spaces, come fully furnished and equipped for the business to use. That means all maintenance and amenities are taken care of. Plus, employee benefits such as free refreshments and relaxation areas are provided for.

By offering these creature comforts, employers are hoping they can create a home away from home for remote workers, inviting them to a new work-and-play space.