JPMorgan Chase has announced plans to construct a massive tower in London’s Canary Wharf financial district. The bank revealed on March 14, 2024, that it will invest billions of pounds in this project, which aims to significantly boost the local economy. The completed building is expected to generate approximately 9.9 billion British pounds (about $13.1 billion) over six years and create 7,800 jobs.
During the announcement, Jamie Dimon, Chairman and CEO of JPMorgan, highlighted that the UK government’s focus on economic growth played a crucial role in their decision-making process. He commended UK finance minister Rachel Reeves for presenting a budget that avoided imposing additional taxes on banks. Reeves characterized the project as a “multibillion-pound vote of confidence in the UK economy.”
The proposed tower will span an impressive 3 million square feet, more than double the size of the UK’s tallest building, The Shard, which measures around 1.3 million square feet. This new structure will also surpass JPMorgan’s recently completed 2.5 million-square-foot global headquarters located on Park Avenue in New York City. Although the exact cost remains under wraps, sources indicate that the tower will require several billion pounds to construct, with the final designs still being finalized.
JPMorgan’s decision to remain in Canary Wharf is a notable victory for the financial district, which has faced challenges in retaining tenants following the COVID-19 pandemic. The area is experiencing a resurgence as firms encourage employees to return to the office. JPMorgan, in particular, mandates that its staff come into the office five days a week.
Previously, there were indications that JPMorgan might explore relocation options in London due to its existing 33-story tower in Canary Wharf being insufficient for its needs. The new tower is set to accommodate up to 12,000 employees, further underscoring the bank’s commitment to the region. Nonetheless, the bank noted that the investment’s progression relies on maintaining a positive business environment in the UK.
While the recent budget from the UK government has alleviated some near-term uncertainty for the economy, JPMorgan anticipates that UK government bond yields will rise in the coming year, according to its head of European rates strategy.
If the project proceeds as intended, it will represent a significant boost for London in the post-Brexit landscape, particularly after several financial firms relocated thousands of roles to the European Union to maintain accessibility for clients. The bank plans to build the tower on a site known as Riverside South, which it acquired in 2008, located to the west of the Canary Wharf estate along the River Thames. Initial plans for a new UK headquarters were postponed after the global financial crisis, leading the bank to occupy the former offices of Lehman Brothers instead.
The new tower will be designed by Foster + Partners, the architectural firm founded by the esteemed architect Norman Foster, who also designed JPMorgan’s headquarters in New York. Shobi Khan, CEO of Canary Wharf Group, described the project as a “defining moment” for the district, predicting that 2025 will be its best year for leasing in over a decade.
In recent years, most new construction in Canary Wharf has focused on residential developments, with the office vacancy rate in the wider Docklands area standing at 15%, higher than London’s average of 10.4%, according to data from CoStar.
JPMorgan’s plans are further supported by George Iacobescu, the former Chairman of Canary Wharf Group, who is advising both the bank and Qatar’s wealth fund on the renovation of the nearby HSBC tower, which is set to become vacant in 2027.
In addition to office space, the new tower will feature a public park and various amenities for employees, including roof terraces, wellness spaces, nursing rooms, restaurants, and cafés. On the same day of JPMorgan’s announcement, Wall Street rival Goldman Sachs also disclosed plans to expand its Birmingham office, intending to hire 500 staff and effectively double its workforce in the city over the coming years.
