Ey, the multinational professional services organization, is reportedly contemplating leaving its long-standing London headquarters as more employees embrace remote work. The company, which has been based in the More London office near London Bridge since 2003, is reassessing its options as part of a property review. With a 25-year lease set to expire in 2028, Ey is evaluating the changing needs of its workforce and the impact of reduced office occupancy levels. Despite nearly tripling in size since its move to the building, Ey has adapted to the shift towards hybrid work models during the pandemic, with the expectation that most employees will spend a significant portion of their workweek remotely.
Ey’s potential exit from its tower block office is in line with other major London employers reevaluating their need for large, centralized office spaces. HSBC plans to leave its headquarters in Canary Wharf, Clifford Chance is relocating to The City of London, and Credit Suisse is departing as part of its integration into UBS. The trend reflects the decline in demand for office space in London overall, as companies downsize and many employees opt for flexible work arrangements.
Landlords in central London are offering extended rent-free periods and incentives to attract tenants to fill the growing amount of empty office space. Companies signing long-term leases in the city are being offered an average of a year and a half rent-free, compared to just five months before 2019. In Canary Wharf, rent-free periods are even more generous, with some leases offering up to three years without rent payments.
Ey’s More London office, designed by Foster and Partners, is part of a development owned by the Kuwaiti sovereign wealth fund. The area is also home to PwC and the former City Hall building. Ey has not made a final decision about its potential exit and stated that it continually reviews its real estate footprint. Canary Wharf declined to comment on the matter.
1. Why is Ey considering leaving its London headquarters?
Ey is exploring its options as more employees work remotely and office occupancy levels decrease. The company is reassessing its real estate needs as part of a property review.
2. Are other companies in London also considering leaving their offices?
Yes, several major London employers, including HSBC and Clifford Chance, are reevaluating their need for large office spaces. The trend reflects the decline in demand for office space as remote work becomes more prevalent.
3. What incentives are landlords offering to attract tenants to fill vacant office space?
Landlords are offering extended rent-free periods and free office fit-outs to entice tenants to lease their vacant spaces. In some cases, companies signing long-term leases are being offered up to three years without paying rent.
4. Who designed Ey’s More London office?
The More London office was designed by Foster and Partners, the British architectural firm responsible for notable buildings like the Gherkin and Canary Wharf’s HSBC Tower.
(Source: Information based on- The Telegraph)