Canary Wharf's 8 Canada Square retrofit and London's office rethink

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Canary Wharf Group and the Qatar Investment Authority have submitted plans to retrofit 8 Canada Square, the 1.1 million sq ft tower long associated with HSBC, into a mixed-use building with offices, a hotel and a public rooftop venue. The scheme is one of the largest examples yet of a wider shift in London: reworking ageing office buildings rather than demolishing them, under pressure from tenant expectations, carbon goals and tougher energy efficiency rules.

The proposal keeps much of the existing 45-storey structure while cutting into the façade and upper floors. It is being watched as a possible template for the large 1990s and early-2000s office towers that will need major investment over the next decade.

What is planned at 8 Canada Square

According to Bisnow’s report of 13 August 2026, floors two to 33 would remain offices, floors 34 to 41 would house a 181-room hotel, and the top levels would become a visitor attraction with a viewing gallery, restaurants and bars. A new public passage lined with shops would run through the ground floor, and sections of the exterior would be removed to create balconies.

Construction Enquirer reported that the application has gone to Tower Hamlets Council and includes four open terraces cut into the tower and a north–south pedestrian route linking the Elizabeth line station with Canada Square Park. The design is by Kohn Pedersen Fox, which won a design competition in 2024.

Cost and timing

The developers have not published a budget, but both outlets cited estimates of £800m to £1bn. Construction Enquirer said strip-out work is expected after HSBC’s lease ends in 2027, with a three-year main construction programme from 2028. Bisnow reported that HSBC has taken around 210,000 sq ft at 40 Bank Street within Canary Wharf, and that large occupiers have been linked to the tower, though no letting has been confirmed.

Why retrofit rather than rebuild

Retaining a building’s frame and floors avoids much of the embodied carbon released by demolition and new construction, a point increasingly weighed by planners, investors and corporate occupiers with net zero commitments. Canary Wharf already has a precedent: in 2022, Citigroup set out plans to refurbish its 1.2 million sq ft headquarters at 25 Canada Square with WilkinsonEyre after dropping earlier demolition proposals, citing the reuse of more than 100,000 tonnes of embodied carbon.

Market conditions add to the logic. Occupier demand is heavily concentrated on high-quality, energy-efficient space, while older buildings struggle to let. Knight Frank’s Q2 2026 data showed Docklands and Stratford vacancy at 10.7% overall but 7.5% for new or refurbished space, with prime Canary Wharf rents of £62.50 per sq ft.

The regulatory backdrop: MEES and EPCs

Energy performance rules are a central driver for landlords. Under the Minimum Energy Efficiency Standards (MEES), it is already unlawful to grant a new letting of most non-domestic property in England and Wales rated below EPC E unless an exemption applies.

On 18 June 2026 the government published an interim response on non-domestic MEES. Its main points are:

Privately rented non-domestic buildings over 1,000 square metres would need to reach EPC B from 2031, where cost-effective.
Buildings under 1,000 square metres would remain subject to the current EPC E minimum.
A proposed interim EPC C milestone in 2027 will not go ahead.
The seven-year payback test and existing exemptions are retained.
The changes require secondary legislation, and a fuller government response is still to come.

For owners of large, older office buildings, the 2031 target creates a clear horizon for upgrade decisions, and makes deep retrofits more likely to be weighed against piecemeal improvements.

Conversions to other uses

Not every obsolete office will be upgraded for office use. CBRE research published in May 2025 found that almost 6 million sq ft of UK offices worth £3.44bn was sold for repurposing between 2022 and 2024, with London accounting for 3.3 million sq ft and around £2.5bn. Intended uses in the capital included life sciences, hotels, student accommodation and residential.

The 8 Canada Square proposal sits between these approaches: it keeps a substantial office component but introduces hospitality and public uses to make a very large floorplate more viable.

What it means for investors and occupiers

Retrofit-led schemes are becoming the default starting point for older London towers, rather than an exception.
The 2031 EPC B target for larger buildings is likely to shape capital spending, valuations and lease negotiations over the next five years.
Occupiers can expect more refurbished, mixed-use buildings offering amenities alongside offices, often at a lower carbon cost than new builds.

The planning outcome at Tower Hamlets has not yet been reported. Landlords and tenants assessing how energy rules affect specific buildings should take professional advice, as the regulations are still being finalised.

Frequently asked questions

What is happening to the HSBC tower at Canary Wharf?

Canary Wharf Group and the Qatar Investment Authority have submitted plans to retrofit 8 Canada Square into a mixed-use building with offices, a 181-room hotel and a public rooftop venue.

When would the 8 Canada Square works take place?

Construction Enquirer reported that strip-out is expected after HSBC’s lease ends in 2027, with main construction starting in 2028 and lasting about three years, subject to planning approval.

What EPC rating will commercial landlords need?

Under the government’s June 2026 interim response, rented non-domestic buildings over 1,000 square metres would need EPC B from 2031 where cost-effective; smaller buildings stay at EPC E.

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Canary Wharf’s 8 Canada Square retrofit and London’s office rethink