JPMorgan Evaluates Options for European Headquarters in London

By Iain Withers

LONDON (Reuters) – JPMorgan is assessing options for its European headquarters in London as the fast-expanding Wall Street bank outgrows its existing tower in London's Canary Wharf financial district, according to three sources familiar with the matter.

The bank has begun examining options for where to base around 12,000 staff in London, with a decision likely to be made after U.S. staff move into their new global headquarters in New York next year.

JPMorgan's European headquarters has been at 25 Bank Street since 2012, after acquiring the tower from the collapsed rival Lehman Brothers following the global financial crisis.

Under CEO Jamie Dimon, JPMorgan has been pushing for employees to return to the office after the COVID-19 pandemic, increasing the urgency for more space due to a growing headcount at the bank and its British retail subsidiary, Chase UK. Its current office at Bank Street, a 33-storey tower with 1.1 million square feet, is reportedly full.

The bank could require between 1.5 to 2.0 million square feet of space in the future. It is considering three options: upgrading 25 Bank Street, building a new tower in Canary Wharf on land it already owns, or relocating to central London. Leaving Canary Wharf is seen as the least likely option due to the amount of space required.

The bank has started planning upgrades that could cost hundreds of millions of pounds, but no final decisions have been made, and any move might take years to execute.

Canary Wharf has experienced high-profile departures since the pandemic, including HSBC, which is moving to a smaller office in the central City of London district.

JPMorgan is also considering building a new office at Riverside South, a vacant plot west of the Canary Wharf estate that it acquired in 2008, although plans were previously shelved.

Finding a site in the City of London that can accommodate a 1.5 million sq ft building would be difficult, but landowners may be willing to get creative to secure such a desirable tenant.

JPMorgan's asset management business will remain at its base by the Thames in London's Blackfriars area, regardless of the decision on the Canary Wharf office.