Bank weighs alternatives as new building capacity raises concerns
HSBC is expected to face a significant shortfall in desk space as it prepares to relocate its London headquarters next year, with new estimates suggesting a deficit of around 7,700 desks at its future City of London location.
According to sources familiar with the matter, the gap is wider than earlier internal projections, which had estimated fewer than 5,000 desks would be lacking. The updated forecast reflects both stricter return-to-office policies and an unexpectedly large headcount in the bank’s London operations.
“HSBC will be vacating 8 Canada Square and moving to our new headquarters in St Paul’s in 2027,” a spokesperson told Bloomberg, referring to its current base in Canary Wharf and its new office at Panorama St Paul’s on Newgate Street.
The move comes amid broader challenges in the commercial property sector as firms reassess office requirements in the wake of changing work habits. Many had planned relocations during the height of remote working, only to find current needs now outstrip original assumptions.
As HSBC Holdings prepares to move into a new London headquarters, executives are grappling with how to handle a more severe desk shortage than they previously anticipated in the new, smaller building https://t.co/13mE2C72E5
— Bloomberg (@business) May 7, 2025
The 592,000-square-foot building HSBC plans to occupy was previously the headquarters of BT Group and is being redeveloped by Orion Capital Managers. The bank has reportedly been considering leasing extra space to offset the projected shortfall.
Workplace density remains a key factor. While the British Council for Offices (BCO) recommends 12.5 square metres per employee, many firms are opting for 15 to 20 square metres to accommodate collaborative spaces and wellbeing facilities. In contrast, banks often maintain tighter layouts, especially on trading floors, where space can drop to around eight square metres per employee.
Even with high-density planning, HSBC’s new site is expected to hold fewer than 6,900 workers at full capacity. Using the BCO standard would reduce that number to about 4,400, intensifying the shortfall.
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