London's office market rebounds as BlackRock and Microsoft hunt for prime HQs
HSBC's skyscraper in Canary Wharf is among the sites examined by BlackRock as the world's largest asset manager seeks a new London headquarters.
BlackRock has viewed 8 Canada Square, the building HSBC will vacate next year when it moves to the Square Mile, alongside several other potential sites in recent months, according to people familiar with the matter.
The US group has also evaluated the Bishops Square development next to Spitalfields Market in east London and Deutsche Bank's former offices at 75 London Wall.
The asset manager is still looking at offices across the city that can offer at least 600,000 sq ft, some of the people said.
There are few sites in London that can provide the square footage large firms require. Demand for high-end offices of this size has increased while supply has shrunk because of a decline in construction after Brexit and during the pandemic.
"Net absorption", or the change in the amount of office space occupied over a period of time, turned positive last year for the first time since 2019, according to real estate data provider CoStar Group, indicating rising tenant demand.
The last three months of 2025 were the strongest quarter for office net absorption since the April to June period in 2019, with 1.9mn sq ft more space occupied than vacated, according to CoStar data.
Trading firm Jane Street was previously in talks to take space at 75 London Wall, but is now looking closely at securing a lease at Bishops Square, according to people familiar with the matter. Green Street News first reported it was in talks for that property.
Meanwhile, Microsoft is preparing to continue its expansion in London. The company is looking at taking space at Film House, a newly refurbished Art Deco building in Soho that once housed the British headquarters of film production company Pathé, according to people familiar with the matter.
Any move into Film House would be in addition to the US tech giant's hunt for a new London headquarters. Microsoft has been seeking buildings with between 200,000 and 250,000 sq ft that are located along the Elizabeth Line, from Paddington in the west to Canary Wharf in the east, the FT has reported. Film House is also located near the Elizabeth Line.
BlackRock, Jane Street and Microsoft declined to comment. CBRE, which is advising Jane Street and Microsoft, also declined to comment.
Additional reporting by Jill Shah in New York
