A new trend shows there has been a rise in companies moving their offices out of London. Larger firms are increasingly moving their offices to other big cities in Great Britain, such as Birmingham, Belfast and Manchester.
Lower rental prices, easier commuting, and a general easier pace of life are a few of the key factors affecting company decisions. Reportedly Birmingham rental prices are nearly 50% cheaper than similar office properties in the capital. Marketing Birmingham, a marketing company that works to raise the profile of the city’s private and public sector, is aiming to attract government departments and public sector companies to the city.
Marketing Birmingham believe that firms moving to the city would be beneficial for everyone, simultaneously raising the profile of the city and providing cheaper rent for the companies.
“The fact that office costs in Birmingham are effectively half the cost of London means there may be opportunities in the future should some of the functions of these departments be relocated,” commented Neil Rami, chief executive of Marketing Birmingham.
However, some companies would argue that moving out of London is not always the best option.
“The biggest hurdles are firstly that you cannot earn as much here as in the City, even though the cost of living is cheaper, and secondly that there’s not yet the calibre of investment banking roles you will find in London,” commented Nick Price, managing director of Edinburgh based IT recruiters Bright Purple.
Only time will tell if other cities begin to attract more tenants than London; several high profile leases are due to end within the next few years and the advantages of leasing in smaller cities might have firms considering a move.