Over the past 10 years, the flight to urban areas has been well documented. More than 3 million people move to cities every week. Within 30 years, more than 2/3 of the world’s population will live in cities. Businesses, following suit, are moving to large and mid-sized cities around the world at an increasing rate - cities like Denver, Seattle and San Antonio registered a 400% growth in corporate headquarters, as of 2018. There are many benefits for companies to consider such a move.
Increased Access to Talent
Newly urban companies have seen a 28% increase in job applications since their move. Further, millennials prefer living in places with more public transit options over their previous generations, signaling need for urban workplaces.
With roughly 7.5% of suburban campuses in obsolescence, suburban campus struggle to meet the changing needs of business. Urban environments often have more vacancies and office options with roughly 10% urban office space open – allowing a company to match its current needs without a large, costly upgrade to the existing structures.
Updated Brand Identity
Moving to a city refocuses the company’s values, alters its interaction with the community, and shows the company is thinking about change. Companies can tout mass-transit options as increased green options and greater interactions with the people. On the heels of its rebranding efforts, GE’s 2016 move to Boston saw GE consciously remove large parking lots and security gates showing its openness to its customers and new ideas.
Although it may be enticing to relocate to follow the migration to urban cities, moving your business is not a decision to be taken lightly. It can bring many expected and unexpected gains to your employees, your product and your customers, while also presenting significant risks in the form operational disruptions, new tax structures and increased employee turnover.
Midas Exchange, a corporate trade company owned by WPP, can help mitigate those risks of relocating your headquarters by purchasing unused office furniture, machinery, appliances, IT equipment or any other under-utilized assets left behind at full or above book value. Midas can help your company leverage these assets to reduce cash outlay on future and current media expenses. Contact firstname.lastname@example.org or call 212-474-0083 to learn how Midas has helped over 95 companies uncover value from their under-performing assets, while freeing up budgets for new initiatives.