Birmingham has netted three big relocations in as many years; with Deutsche Bank, HS2 and HSBC all opening large offices. So will we see a run of big firms decamping from London to Brum?
People were at the top of the list when it came to choosing these relocations. Although HSBC also considered Leeds to house its ring-fenced UK retail business, Birmingham’s Arena Central scheme (pictured) won the day thanks to the city’s proactive local authority. “They were willing to invest in providing a support network for the people relocating,” says HSBC’s senior corporate real estate manager, Alan MacRae.
Meanwhile, Deutsche Bank had its eye on local recruitment. The bank’s Birmingham head, Paul Anderson, says: “Birmingham was an easy choice when it came to picking a location outside London. The key factor is the labour market here. We have been able to recruit the highest-calibre teams for compliance, technology and professional services.”
Could Birmingham see five big deals in five years? At least two or three major requirements are understood to be circling the city, with at least one due to land within the next six months.
Chris Lewis, head of tenant representation at Deloitte Real Estate, remains cautious. He says: “The HSBC relocation won’t be the first of a dam-busting raid on London,” he says. “I don’t predict a plethora of further moves, even though the UK regions are better placed than for a long time to receive them.”
In the meantime, all eyes are on how quickly Birmingham’s prime rents will rise from the current £30 per sq ft headline level.
