Posted on Friday, August 26, 2016
This article echoes what we feel at Commercial Property Broker is the brilliant and thriving opportunist Business community of Birmingham and we have highlighted in this article 8 Reasons Birmingham is better for business and how Birmingham plans to rival London by 2030 as a Financial Hub.
Firstly, lets take a small step back. At the start of the year, the United Kingdom (UK) and it's citizens faced one of the biggest 'major decisions' of their lives. 23rd June 2016, claimed as 'UK Independence Day' by some, and 'Disaster' by others; however, regardless of which way you voted, it's what we all do now that will count in the future and our children futures.
Opinions aside with all of the pre and post gloom ship of Brexit predictions, the results of office space growth seem to have been fairly consistent. Results show over half a million in Square Footage (sqft) already occupied in Birmingham and Edgbaston for the first 'Two Financial Quarters' of 2016 (Pre-Brexit).
However, there seems to be a slight slowdown in the amount of office space being occupied. The next 6 to 12 months will show real indication as to where the market will shift.
One clear sign is that the London office space market has turned in favour of tenants.
One thing's for certain, the London office space market has turned in favour of tenants, with rent prices falling. However, serviced office space in London can still be very costly, especially when starting out or looking to expand your workforce to a larger office location; and with the prediction of London office rents set to rise by 13% in 2017. Birmingham seems to be a challenging alternative for your business. Which leads us to our '8 Reasons Birmingham is better for business' below.
Birmingham is cheaper in every way.
From rent, transport to a pint at your local, the costs of living and working in Birmingham are significantly lower than those in London.
In 2015 Birmingham became the leading start-up hub outside London, with 19,000 businesses created that year. Whether you’re a small start-up or well established big business, Birmingham has something to offer.
Costs of transport within Birmingham are almost half the cost of London. Birmingham offers competitive transport links into London and elsewhere across the country. With the recent £600 million development of New Street Station and the proposed HS2 that will get you from Birmingham to London in less than an hour, travelling couldn’t be easier.
Whilst London’s job growth is currently below average, Birmingham ranks second for growth rate beyond Edinburgh. Unemployment continues to decrease with only 6.7pc of Birmingham’s population unemployed, half that of two years before.
The Tight Knit Culture
Yes Birmingham is smaller, but packs a lot of punch! From restaurants, to museums the options are endless and surely trump the arduous task of navigating the London Underground just to get from A to B!
Beyond the planned 350 skyscraper replacing the Natwest Tower, as of January 2016 there is currently 969,000 sqft of office space under construction.
Big Business Investment
Businesses such as Deutsche Bank, HSBC and Jacob Engineering are just a few of Birmingham’s recent expats. Birmingham is undergoing an enticing economic renaissance that doesn’t seem to be slowing down anytime soon. Not to mention that Finance West Midlands are always at hand for more investment & funding options for SME's.
Once known as “the workshop of the world” Birmingham has always welcomed diversity. Whilst much of the heavy industry has dwindled away, the cultural ties and multiculturalism of the city are still there too see.
Not yet convinced that Birmingham may hold the next step for you and your business?
The rest of this article will highlight why Birmingham increasingly rivals London’s business dominance and presents the perfect business venture for any company whether big, or small.
The second city plans to grow even bigger with expansions of more than 1 million sq ft of office space. Birmingham’s plans include a 350ft skyscraper costing £60 million, in turn replacing the “monstrosity” of the Natwest Tower. With investments now coming from Chinese Billionaires, this sees a move that will undoubtedly waiver even London’s business prowess.
Chinese Billionaires set to invest into a major Birmingham Regeneration scheme and have dubbed it Boomingham
Birmingham will compete in Global Office Market
Director of planning Waheed Nazir believes the development will leave Birmingham: “competing globally in the office market”.
He also believes the development will help meet underlining demand for Grade A office space. Enhance growing market confidence in Birmingham’s professional services sector and thus expand already thriving business community in Birmingham’s Colmore Row.
With news of vast building developments it would be easy to believe that Birmingham is slowly leaving smaller companies behind. However that is far from the case, with small businesses continuing to thrive in Birmingham.
Birmingham plans to construct more than 1 million sq ft of office space in a bid to rival London for business.
(Video footage courtesy of David Moore)
14,152 new businesses were registered in Birmingham during 2015
Jeroms Accountants Director Mark Eden shared his views on the city’s thriving business sector ahead of the Birmingham Post Business Awards.
“Business owners and entrepreneurs have such enthusiasm for innovation and new ideas that there is no standing still in Birmingham’. Later adding that is ‘what makes it such an exciting place to be’."
Therefore it is no surprise that 14,152 new businesses were registered in Birmingham during 2015- more than any regional city.
Named one of the top 10 cities in the world in 2015, Birmingham is rivalling London in more ways than one. So if it’s not Birmingham’s continuing technological advances, diverse cultural landscape or excellent transport links. Consider Birmingham because of its executive office space and business opportunities and leave London and its insane expense behind.
What do you think? Had any experiences working in London and Birmingham? Drop us a comment and let us know; we would love to hear your thoughts on our 8 Reasons Birmingham is better for business topic and your thoughts on Birmingham's plans to rival London as a Financial Hub by 2030.
Commercial Property Broker Services
Whether you’re a start-up or long established company. Requiring small or large premises, Birmingham has something for every business. If you need help in locating you business in Birmingham; and also need advise on deciding what type of office suits your company, please get in touch today using our registration page or give us a call on 0808 901 9655.
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