Morgan Stanley vacates space at Canary Wharf

Morgan Stanley is to vacate a quarter of its office space at Canary Wharf from February 2010, Songbird Estates confirmed on Friday. In a press release, the company said that its subsidiary, Canary Wharf Group (CWG), has received notice from Morgan Stanley that it would on that date exercise the break option of the lease of 20 Cabot Square, which was due to expire in 2020. Morgan Stanley currently occupies approximately 345,500 sq ft at 20 Cabot Square.

Morgan Stanley will continue to lease 546,500 sq ft at 20 Bank Street and to own and occupy the 448,500 sq ft building at 25 Cabot Square, Songbird Estates added. Following the exercise of the break clause, the CWG investment portfolio will be 95.7% let. The rent derived from 20 Cabot Square equates to 3.8% of CWG's rental income and 4.3% by area of the CWG investment portfolio. However, property agents have warned that the building would add to the growing vacancy in the wider Docklands office market, the Financial Times reported.

Songbird added that three new tenants will shortly be occupying buildings currently being built at Canary Wharf. State Street will be moving into its new 300,000 sq ft headquarters at 20 Churchill Place later this year. The company will be joined in 2010 by both KPMG in its 400,000 sq ft building at 15 Canada Square and Fitch in the 320,000 sq ft building at 30 North Colonnade. It is anticipated that these three buildings will together initially
accommodate approximately 7,000 staff.