For any regional city, securing 100,000 sq ft of occupational inward investment has been both a real coup and a rarity. The agency fraternity has often said that you can count the number of major inward investments into Birmingham on one finger, once every five or 10 years.
This rule of thumb, however, is now looking very outmoded as the city has secured three in three years, a move unheard of probably in any of the UK core cities.
And what a trio they are: Deutsche Bank’s 130,000 sq ft letting at Brindleyplace in 2013 which brought an additional 1,500 jobs to the city; HS2’s commitment in 2014 to acquire a minimum of 100,000 sq ft at Two Snow Hill for its 1,200-strong delivery team; and HSBC’s recent acquisition of 2 Arena Central for the headquarters of its ring-fenced retail banking operation, set to relocate from Canary Wharf by 2018.
These three deals show a commitment to more than 4,000 new jobs in the city in a 36-month period.
Ian Stringer, regional senior director at GVA, said: “So-called ‘decentralisation’ from London and the South East to the regions has always been on the political agenda for the public sector through initiatives such as the Lyons Review and Smith Review.
“However, with the sad exception of periods of heightened risk of terrorism, there have been no such drivers in the private sector. In my experience of 30 years in the regional office markets, the whole concept has been a myth. The reality for the majority really has been the ‘one every 10 years’ adage.”
New paradigm
This is a new paradigm, with the current wave of fresh occupiers representing many customer-facing professional facilities, rather than support or back-office jobs.
It demonstrates a real shift in how big businesses are thinking strategically about their ability to attract and retain staff of the appropriate calibre.
The driver is definitely people rather than property costs (although that is a
clear benefit in the regions), with the inability to buy homes in London, raise children in a child-friendly environment and increasingly inhuman commuting conditions all important factors that are leading more employable people out of London, with Birmingham attracting more than any other city in the UK.
Alan Kier, chief executive of HSBC’s retail bank, recently quoted two key factors in his organisation’s decision to relocate to the city: “Birmingham has more start-ups than any other city in the UK, with 18,000 in 2014. Why wouldn’t we want to be where entrepreneurial Britain is at its strongest? It is about people and quality of life, summarised by good housing, education and great connectivity.”
For me, this is Birmingham beginning to shine as it should: we are delivering the right blend and availability of skills, with outstanding support from a dynamic local authority and one of the most active local enterprise partnerships in the UK. We are promoting and supporting development and, crucially, are delivering quality jobs in the professional, financial and services sectors.
Who will move next?
So, the hard evidence now invites me to consider who will be next to relocate to Birmingham? Can the city achieve “four in four” or even dream of “five in five”?
I am confident that this is only the start of a wave of demographic changes in our society driven by the needs of people rather than companies, creating trends that will reshape Birmingham and contribute hugely to its future success.
Right now, counting anything on one finger in relation to Birmingham has been consigned to history. Three years, three very significant businesses, and more than 4,000 jobs: the figures speak for themselves.
Waheed Nazir is director of planning and regeneration for Birmingham city council
