JPMorgan Chase has announced plans to construct a substantial new tower in London’s Canary Wharf financial district, committing billions of pounds to the project. The bank revealed its intentions on Thursday, stating that the development is anticipated to contribute approximately £9.9 billion (around $13.1 billion) to the local economy over the next six years, encompassing the construction costs. This ambitious project is expected to create 7,800 jobs in the area.
JPMorgan’s Chairman and CEO, Jamie Dimon, highlighted that the UK government’s emphasis on economic growth was pivotal in the decision-making process. He praised the recent budget introduced by UK Finance Minister Rachel Reeves, which exempted banks from new taxes. Reeves described JPMorgan’s investment as a “multibillion-pound vote of confidence in the UK economy.”
Details of the New Tower
The planned tower will span 3 million square feet, significantly larger than the current tallest building in Britain, 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 New York’s Park Avenue. According to a source familiar with the project, the construction is expected to cost several billion pounds, with final designs—including height—still under consideration.
JPMorgan’s decision to remain in Canary Wharf marks a positive development for the financial district, which has faced challenges in retaining tenants since the onset of the COVID-19 pandemic. The area is experiencing a resurgence as firms, including JPMorgan, encourage employees to return to the office. The bank has been particularly proactive, mandating a return to the workplace five days a week.
Last year, reports indicated that JPMorgan was evaluating its options in London, potentially considering a move to the central City of London due to the limitations of its existing 33-story tower in Canary Wharf. The new tower is designed to accommodate up to 12,000 employees.
Significance for London’s Financial Landscape
This investment is contingent upon a positive business environment in the UK. While Britain’s budget has alleviated some short-term economic uncertainties, JPMorgan’s head of European rates strategy expressed that the bank still expects UK government bond yields to rise in the coming year. If the construction goes ahead, it would represent a significant post-Brexit boost for London, especially following the relocation of thousands of roles by various financial firms to the European Union.
The new tower will be constructed on a site known as ‘Riverside South,’ which JPMorgan acquired in 2008. Initially intended for a UK headquarters, those plans were abandoned following the global financial crisis, leading the bank to occupy the former Lehman Brothers building instead. With the British arm of retail bank Chase expanding, JPMorgan has outgrown its current 1.1 million-square-foot facility.
Prominent architectural firm Foster + Partners, founded by renowned architect Norman Foster, will design the new building. Shobi Khan, CEO of the Canary Wharf Group, characterized this development as a “defining moment” for the area, noting that 2025 is projected to be the best year for leasing in over a decade.
The recent construction activity in Canary Wharf has largely focused on residential projects, while the office vacancy rate in the broader Docklands area stands at 15%, exceeding London’s average of 10.4%, according to data from CoStar.
JPMorgan is receiving strategic guidance from former Canary Wharf Group Chairman George Iacobescu, who has also been reported to advise Qatar’s wealth fund on revamping the nearby HSBC tower, which is set to vacate in 2027. The new plans for the JPMorgan tower include a public park and a variety of amenities designed for staff, such as roof terraces, wellness spaces, nursing rooms, and dining options.
In a related announcement, Wall Street competitor Goldman Sachs stated it would expand its Birmingham office in the UK, aiming to hire an additional 500 staff and effectively doubling its workforce in the city over the coming years.
