Culture Society, Identity and Belonging
Even though office demand in London isn’t what it used to be, modern spaces suited for the post-Covid worker are still sought after. So new megaprojects are still being approved, funded and built to meet demand (see One Undershaft and Google’s new King’s Cross HQ).
The alternative to buying new is renovating old. But as Citigroup has found out, that doesn’t come cheap.
In 2022, the bank announced plans to renovate its skyscraper home of 25 Canada Square in Canary Wharf. Citigroup had spent £1.2 billion to buy the building three years earlier, to stop paying sky-high rent.
When the building opened in 2001, it was the second tallest in the country and was as modern an office building could be. But the needs of modern employees – and employers’ need to get back into the office – have left the building out of date.
Citigroup initially said renovation costs would total £100 million. Now, the figure is above £1 billion.
Canary Wharf Group will shudder. It’s planning a more ambitious makeover of the HSBC tower nearby.
