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Although London has been the traditional landing
pad for such relocations, corporates such as HSBC
and Deutsche have recently relocated large parts of
their operations out of expensive London to cheaper
Manchester and Birmingham, which increasingly boast
comparable properties and people. U.S. businesses
have become an increasing presence in these cities.
For example, such U.S. firms as Muznich and Co (asset
management), Latham and Watkins (law firm), and Ford
Credit (financer) have taken substantial office space in
Manchester in the last year or so.
What does this mean for the future? Going forward
international companies including U.S. firms looking
to relocate to the UK might well ignore London and
head straight to other UK cities. A plethora of inward
investment agencies have been established solely to
promote these cities and are using detailed data about
the availability and cost of property and skills to paint
a favourable picture. This strategy is working with EY
reporting that 40 multinational firms, many U.S. based,
are looking to move global or regional headquarters to
the UK.
That said, the future is not certain. Unfolding events
this year, including the referendum on whether the UK
should leave the European Union – the Brexit – and U.S.
presidential elections, may slowor even reverse the trend
for U.S. businesses to relocate to the UK. Inevitably the
ebb and flow of competition, the playoff between cities
seeking the same kinds of global footloose occupiers
and investment, will continue apace.
RICHARD YORKE,
MRICS
Director of Analytics,
CoStar Group
ryorke@costar.co.ukThe Occupier Edge | 25