Hines Bags Big New Tenant For Canary Wharf Redevelopment
The Competition and Markets Authority is leasing 113K SF at Hines’ 455K SF office redevelopment scheme, The Cabot, in Canary Wharf.
The CMA will move to The Cabot from its existing base in Holborn by September 2019, in a move that the taxpayer-funded watchdog said would allow it to make significant cost savings. It has taken a 15-year lease.
The redevelopment of the Cabot is due to be completed later this year. Morgan Stanley is leasing 250K SF of the building, with the remainder having been redeveloped speculatively. The deal with the CMA leaves 95K SF unlet.
The work undertaken includes a comprehensive redevelopment of the ground-floor entrance, extending and remodelling the arrival and reception area, and adding 10K SF of new retail units, which will include a restaurant, café and food and beverage outlet. In addition to increasing the street-level retail amenities, Hines is re-landscaping the public realm across the site.
The building is owned by Hines' $4.4B Global REIT, which earlier this year formally kicked off a liquidation process.
The deal will be a boost for the quiet Docklands office market, where the 142K SF leased in the second quarter of the year was 40% below the 10-year average, and the vacancy rate of 11% is 38% above the 10-year average, according to Knight Frank.
