Why would a company move headquarters?

The main results are as follows. The headquarters move to metropolitan areas with good airport facilities, with a dramatic impact, low corporate taxes, low average salaries, high levels of business services, the same industrial specialization and the agglomeration of headquarters in the same sector of activity. Review opportunities for greater operational efficiency. Finally, companies sometimes move as a result of an acquisition.

When a company is purchased by another company, its corporate location may change to that of the buyer; this is what happened when Budweiser moved to Belgium, after being bought by InBev. Expansion %26 Growth The main reason a company decides to move is because its current facility no longer has enough space to meet its requirements. Any future consideration of office space should take into account sufficient space for growth and expansion of the company. This will ensure you don't run out of space before the lease expires.

Use this handy office space calculator to get a clear indication of how much office space you need. In this survey, we found that the most common reason companies change offices is because of their growth. Businesses that move for “growth reasons” versus “no growth” tend to worry relatively less about price and more about the amenities and flexibility of leasing. And as with most things in real estate, “Location, location is key for everyone.

Many technology companies have cited high taxes, housing prices and the cost of living as reasons for moving their headquarters to Texas. A common reason companies are exploring a possible relocation of headquarters is the desire to save costs. Smart companies are considering these costs in their relocation decision models to minimize the effect of turnover costs. Some companies redeploy only the top tier, an executive relocation of as few as 8 to 10 leaders, while others seek to minimize disruption by locating the so-called “second headquarters” with several hundred positions in an (ideally) improved talent market.

Reduce Costs The need to reduce operating costs is also a common reason why many companies have to move. People are what make up companies and these same people, employees, can be deeply affected by the decision to move. Reorganization or Better Facilities Companies often find that their current office facilities are too outdated to carry out their tasks efficiently, or want to give their company a new image by moving to more modernized facilities. Companies doing business around the world can look for a location that provides better international air service to access customers and company facilities.

It should be noted that only 14.9% of companies move simply because their lease is maturing and only 2.5% of companies move in response to a drop in business. Because a corporate headquarters can generate jobs and businesses, many state governments offer generous tax incentives to companies that decide to move. Expert knowledge and evaluation will help companies make informed relocation decisions that help ensure a company's success for many years to come. Head office relocations are often the most difficult decisions for companies to make, not because of technical requirements but because of the impact on large numbers of employees and executives.

Jackson Jeannette
Jackson Jeannette

Subtly charming social media fanatic. Evil zombie ninja. Zombieaholic. Typical tv evangelist. Lifelong travel expert.