Morgan Stanley seeks new UK HQ

Morgan Stanley is looking for a major new London headquarters, countering fears that Covid19 will hit demand for office space in financial capitals.

The US lender has contacted a few developers as it assesses options for a move from its Canary Wharf premises in London, say insiders. The bank wanted space of at least 55,000m², and was likely to focus on the east London financial district and the City of London, the sources said.

The search was at an early stage and was not likely to result in a deal until late 2021 at the earliest, with no certainty a move would take place at all, the sources said.

A spokesman for Morgan Stanley declined to comment.

Morgan Stanley would become the latest in a series of major investment banks to move to new premises in London as they seek modern, efficient buildings that can help attract and retain staff, and keep a lid on costs.

While the search for a potential new building comes several years before the bank’s leases expire, there’s a scarcity of large new development plots in the capital, and putting up a building on such a scale would take years. The lender now occupies about 75,000m² of space in two buildings in Canary Wharf.

One option being considered is to move into a single large new premises, bringing all of its London staff together.

The bank could also look to take a smaller premises in the pricier City of London district, as well as a larger building near its current Canary Wharf base, the sourcese said.

“Morgan Stanley will remain a major player in the commercial real estate market globally,” CEO James Gorman said on a call with analysts in July.