Firm Migration Exec Summary

The Impact of Firm Migration on the City of London RESEARCH REPORT CITY OF LONDON CORPORATION

SUMMARY REPORT

The Impact of Firm Migration on the City of London is published by the City of London.

The author of this report is TBR. This report is intended as a basis for discussion only. Whilst every effort has been made to ensure the accuracy and completeness of the material in this report, the author, TBR, and the City of London, give no warranty in that regard and accept no liability for any loss or damage incurred through the use of, or reliance upon, this report or the information contained herein.

January 2014 Š City of London PO Box 270, Guildhall London EC2P 2EJ www.cityoflondon.gov.uk/economicresearch

The Impact of Firm Migration on the City of London RESEARCH REPORT CITY OF LONDON CORPORATION

SUMMARY REPORT

www.cityoflondon.gov.uk/economicresearch

The Impact of Firm Migration on the City of London

This project was commissioned by the City of London Corporation in June 2013. TBR was asked to examine the characteristics and trends exhibited by the business population within the City of London, also referred to as the ‘Square Mile’, and its surrounding areas, over the nine year period of 2003 to 2012, paying particular attention to firm migration.

This period was one of significant change, including the deepest global recession since the 1930s. The research considers the impact, implications and interaction of firm migration on key aspects of the City including serviced premises, business clusters and the retail offer, as well as the adjacent ‘Tech City’ area.

2

This report provides a summary and overview of the research findings. The full technical report provides additional detail on each of these aspects and can be downloaded here1.

This research brings together business performance data from TBR’s own database, Trends Central Resource (TCR)2 with property transactions data from Estates Gazette (EGi)3.

The analysis of business migration represents a novel approach to investigating this underresearched component of economic change. When combined with the other components of start-ups, closures and continuing firms, the research provides new insights into the forces at play within a local economy.

Firms

7,750 %

49,760 6%

RESEARCH REPORT CITY OF LONDON CORPORATION

Summary findings The City is a global centre for finance and a key driver of wealth creation in the UK. Given the nature of the 2008 recession (balance sheet rather than inflationary), the City, along with London and the UK as a whole, was inevitably exposed to its full consequences. Since then, the UK economy has made a slow recovery and has yet to recover to pre-recession levels of Gross Domestic Product (GDP) output.

At present, the City is home to 17,750 businesses employing 365,500 people that contribute over £38.5bn to the UK economy5. Furthermore, the City is highly productive (£105k output per employee) compared to London (£57k) and the UK (£38k).

Figures 1, 2 and 3 demonstrate that while businesses in the City represent only 4% of London’s total firms, they are highly productive, generating 8% of the employment and 16% of the output.

By comparison, the City has recovered relatively well. Following initial reductions in firms, employment and output4, the latter is now above the 2008 level, though firm and employment numbers are still to match their earlier peaks.

Figures 1, 2, 3: Comparison of the City of London to the whole of London

Firms

Firms

Employees

Employees Employees 365,500 8%

365,500 8%

449,760 96%

449,760 96%

4,288,520 82%

4,288,520 82%

4,288,520 82%

17,750 4%

17,750 4%

365,500 8%

Output (GVA)Output (GVA £38.5bn 16%

£38.5bn 16%

£242.2bn 84%

£242.2bn 84%

3

£ 8

The Impact of Firm Migration on the City of London

How is the profile of the City’s business community being changed by migration?

The components of change that impact any economy comprise of the following:

1. Business start-ups and business closures; 2. The performance of continuing businesses (i.e. businesses that survive the period of time); andEmployees 365,500 3. Inward8% and outward migration of businesses.

This research investigates the effects of these three components of change over a nine year period, 2003 to 2012. Each of these three components is investigated in more detail in the following sections.

Reading from left to right, Figure 4 describes the position in 2008 (Stock 2008) in terms of the number of firms, people employed and amount of output (as defined by Gross Value Added), followed by the impact of firm births (Births 2008 to 2012), continuing firms (Continuing Businesses) and closures (Deaths 2008 to 2012) to present the position in 2012 (Stock 2012). The vertical axis highlights the impact of firm migration into and out of the City.

Stock 2008 + Births + Continuing Businesses – Deaths + In Migrators – Out Migrators = Stock 2012

Figure 4 sets out a detailed analysis of these three components over a more recent time period in particular, 2008 to 2012, to provide an overview looking forward (post-recession).

Figure 4: Components of change diagram from 2008 to 2012 highlighting the inputs and outputs that have changed in the City

Firms Migrating in 2,679 60,156 £6,525.2 £108.5 22

Order Firms Employment Output (GVA) (£m) Productivity (GVAPH) Employee per firm

Stock 2008 20,109 370,493 £35,793.3 £96.6 18

4

Births 2008 to 2012 4,316 41,322 £4,202.1 £101.7 10

Continuing Businesses 0 3,588 £1,056.3

Firms Migrating Out 2,453 46,620 £2,996.1 £64.3 19

Deaths 2008 to 2012 6,903 63,487 £6,126.9 £96.5 9

Stock 2012 17,748 365,452 £38,453.9 £105.2 21

RESEARCH REPORT CITY OF LONDON CORPORATION

Business start-ups and business closures Over the period 2003 to 2012 there were over 1,000 start-ups annually (12,000 in total). By 2012, 27% of all firms in the City had been set up within the last four years, i.e. since 2008. This compares to 31% for London as a whole over the same period.

As a result, employment losses through closures have tended to exceed those gained from startups. Thus for every three employees lost through business closures, only two are replaced by new business starts.

By contrast, business closures have ranged between 1,000 and 2,000 per annum since 2008.

This generated a closure rate of 44%, which is comparable to London. However, this is notably higher than the start-up rate of 27% for the same period in the City.

The net effect of business start-ups and closures was a reduction of ÂŁ3.9bn in output and nearly 33,000 jobs over the period 2003 to 2012.

As Figure 5 shows, the rate of firm closures continues to outpace start-ups, suggesting that recovery is still fragile.

Figure 5: Business start-up and closure rates between 2003 and 2012 Business start-up Business closure 16%

12% 10% 8% 6% 4%

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

0%

2003-04

2%

Per centage points of global growth

14%

Business Closures Business Start-ups

5

Business start-up

16% 14% 12% 10% 8% 6% 4% 2%

Employment

2011-12

2010-11

2009-10

2012

2011

2010

2009

Business Start-ups

2008

2007

186,000

Business Closures 2006

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

Figure 6: Change in employment and output of continuing businesses between 2003 and 2012

£19,000 194,000 This net inflow of firms has brought positive gains in employment of between 5,000 and 6,000 jobs per £18,000 192,000 annum. This is coupled with significant increases in £17,000 190,000 economic output of between £250m and £1.3bn each year. This confirms that the City continues to £16,000 188,000 be an attractive location for growing businesses.

2005

Over the full 2003 to 2012 period, continuing businesses have seen a net loss of 600 jobs, but 4%an overall gain of £4.8bn in output. This suggests that the core business base of the City is resilient 2% and providing a valuable contribution to the 0%overall output of UK economy as it recovers from the recession.

6%

£20,000

196,000

2004

8%

Output (£m)

As seen from Figure 7, the City has witnessed £23,000 202,000 net gains in firm numbers through positive migration between 2003 and 2012 in all but one £22,000 200,000 year (2009/10). These gains have become more £21,000 198,000 pronounced from 2010 onwards, following a postrecession dip.

2003

can be seen from Figure 6, employment levels were falling well before the start of the 14% recession, but gathered pace in 2007/8. Since 12%then employment has recovered well. Conversely, output was on an uptrend until falling in 2007, and 10% then improving from 2009 onwards.

Per centage points of global growth

16%As

2004-05

2007-08

2005-06

Employment

Business closure

2003-04

2008-09

This component includes businesses that survived the period 2003 to 2012, but which moved location, either into or out of the City. The research indicates that since the recession, firms appear more likely to relocate, both into and out of the City.

2006-07

These are businesses that were present in the City in 2003 and survived through to 2012 (‘continuing businesses’). Over any given period, the number of these continuing businesses stays the same but their contribution to the economy is Business start-up likely to change.

2004-05

Inward and outward migration 0% 2003-04

Continuing businesses

Per centage points of global growth

The Impact of Firm Migration on the City of London

Business closure

Business S

£15,000 2003

Figure 7: Net effect of migration on business counts from 2003 to 2012

Output (£m) 202,000

£23,000

300

200,000

£22,000

250

198,000

£21,000

196,000

£20,000

194,000

£19,000

192,000

£18,000

190,000

£17,000

188,000

£16,000

186,000

£15,000

200 150

Per cent of portfolio

0 -50

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

-100 Business Start-ups Output £m -150 2004-05

2012

2011

2010

2009

2008

2007

2006

2005

2004

50

2003-04

6

2003

100

Employment Output (£m)

RESEARCH REPORT CITY OF LONDON CORPORATION £23,000

202,000

£22,000

198,000

£21,000

196,000

£20,000

194,000

£19,000

2012

2011

2010

2009

2008

2007

2006

2005

£16,000

Business

£15,000

2003

150

Per cent of portfolio

-50 -100

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

-150

Figure 8: Increase in the number of tenants in serviced premises 2003 to 2012

2500

2000

Per cent of portfolio

1500

1000

500

2012

2011

2010

2009

2008

2007

2006

0 2005

Overall, migration can be seen as having extremely positive impacts for the City economy.

£17,000

These strong economic contributions are in part 100 to increases in productivity. Average output due per50employee in serviced premises has risen from £60k to £94k over the last nine years, indicating an 0 influx of highly productive businesses.

2004-05

1. Inward migrators are generally larger (33 employees) than outward migrators (24).

2. I nward migrators are more productive, generating £113k per employee than outward migrators (£67k).

3. Inward migrators are more established, typically between 10 and 20 years old compared to outward migrators that tend to be nine years old or less.

4. Inward migrators are more likely to be European or North American-owned, whereas outward migrators are more likely to be independently owned.

2003-04

Key differences between inward and outward migrators

£18,000

The number of businesses in serviced premises has risen significantly over the last decade.

The number of tenants in a sample of serviced premises in the City and surrounding areas, increased from nearly 700 in 2003, to almost 2,400 firms in 2012 (see Figure 8). Coupled with this are steady rises in employment from a total of 8,800 employees in 2003 to over 22,000 in 2012 in 300 serviced premises in the City (or 10% per annum), 250 a fourfold increase in economic output from and £523m to over £2.1bn (or 15% per annum).

200

2003

Firms tend to relocate from or to other parts of London, with adjacent boroughs featuring most prominently. While Westminster usually provides the greatest number of inward migrating firms, the majority of employees come from firms relocating from Islington. The South East of England is the most popular location outside London.

2004

186,000

2003

192,000types of businesses are What occupying serviced premises 190,000 in 188,000 the City, and how has this changed over time?

2004

Sources and destinations of firms that move

200,000

7

The Impact of Firm Migration on the City of London

What type of office space is attractive to businesses, especially those that have moved into the City?

Most prevalent sectors located in serviced premises n Professional, Scientific & Technical – 580 firms. n Real Estate & Administrative – 460 firms. n Information & Communication – 330 firms.

Other characteristics of businesses located in serviced premises n Most firms less than five years old. n Few firms over 15 years old. n Firms have an average productivity rate of £94k per employee, above the London average of £57k per employee.

The average size of office space taken up in the City is 6,400ft2. By comparison, inward migrants tend to take up significantly larger premises, of around 8,830ft2 on average.

The average cost of office space taken up in the City was £27 per ft2 whereas inward migrants tend to pay slightly more at £31 per ft2 (see Figure 9).

Key characteristics of premises Inward migrators tend to pick newer buildings constructed from the 1990s onwards, compared to businesses in general that are more likely to choose pre-war buildings or those built between the 1950s and 1970s.

Inward migrators are more likely to select second-hand grade A office space, compared to businesses in general, which are more likely to select second-hand grade B office space.

Figure 9: Average rentals achieved 2011/12 (£per square foot) 350

1500

300 250 200

Per cent of portfolio

150 100 50 0

8

Total premises transactions in this year

Migrations into City

All years Av -2500

RESEARCH REPORT CITY OF LONDON CORPORATION

What is the impact of Tech City?

What type of businesses move to it?

For the purposes of this report Tech City has been defined as a geographical location to the north of the Square Mile, and includes an element of overlap with the City. It is comparable to the City itself in terms of the business base, though Tech City has a slightly greater number of businesses within its area than the City – 21,100 actively trading businesses in 2012 (compared to 17,750 in the City). However, Tech City businesses are generally smaller, employing a total of 243,600 people (versus 365,500 in the City) and less productive than the City, outputting £17.4bn to the UK economy (or £71k per employee, compared to £105k in the City). This difference in productivity largely reflects the Square Mile’s position as a global leader in finance and Tech City’s greater reliance on (relatively new) tech firms.

Map 1: Location of Tech City and the City of London

9

The Impact of Firm Migration on the City of London

350

1

300 250 200

Per cent of portfolio

150 100 50

Start-ups and closures

The0impact of migration Total premises transactions in this year

Across Tech City start-ups have exceeded closures over the whole nine year period (2003 to 2012).

However, in 2008/09 the situation reversed, with more closures than starts. Similarly in 2011/12; this downward trend is particularly noticeable and results mainly from a dramatic fall in the number of start-ups, though the rate of closures has also risen.

350

The analysis of start-ups and closures suggests that 300firms are surprisingly similar in size, output and these productivity. It would be anticipated that new firms250 would be smaller and less productive than those that close.

200

Migrations into City

In all but two years, Tech City has witnessed net losses due to migration. Migration between 2009 and 2010 was particularly damaging to the economy with a net loss of output of nearly ÂŁ900m.

Key 1500characteristics of inward migrators 1. 1000 Propensity to be involved in Information 1500 & Communication or Professional, Scientific 500 & Technical activities.

0 2. Likely to employ fewer than 10 people.

3. More likely to be independently owned than -500 have a UK or foreign-owned parent company.

-1000

Figure 10: Tech City net firm creation 2003 to 2012

2011-12

2010-11

2009-10

2008-09

All years Average -2500

Migrations into City

2007-08

Total premises transactions in this year

Net Firm Crea

-2500 2006-07

0

-2000

2005-06

50

-1500

2004-05

100

2003-04

Per cent of portfolio

150

2003-04 2 2004-05

Figure 11: Net migration of businesses in to Tech City

1500

100

1000

0 -100

500

-200

0

-300

-500

Per cent of portfolio

-400 -1000

-500

-1500

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2004-05

2003-04

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

-2500 2005-06

-700 Net Firm Creation -800 2004-05

-2000

2005-06

-600

2003-04

10

All year -2

2003-04 2005-06 2007-08 2009-10 2011-12 2004-05 2006-07 2008-09 2010-11

Net Firm C

2003-04 2004-

RESEARCH REPORT CITY OF LONDON CORPORATION

TMT performance in Tech City The Technology. Media & Telecommunications (TMT) sector has fared relatively well in Tech City: n There were marginally more start-ups than closures over the four year period 2008 to 2012 in particular, when Tech City as a whole saw net closures. n While there were around a fifth fewer inward migrators than outward migrators, incoming firms were slightly larger (12 employees compared to 11) and significantly more productive (£109k per employee compared to £81k per employee). n Continuing firms also generated an extra 130 jobs and raised output by £168m.

Destinations of outward migrators

Characteristics of businesses that move from Tech City to the City 1. Micro businesses, with 10 or fewer employees.

2. H ighly productive businesses, with an average of £108k output per employee.

3. M ainly office-based, working in the Financial Services, Real Estate or Professional, Scientific & Technical Services sectors.

4. Mainly independently or UK-owned.

Overall then: n Since 2008 Tech City as a whole has been losing firms, and experienced reduced levels of employment and output as a result of net outward migration. n T here is a greater preponderance of TMT businesses in Tech City than in the Square Mile. n Since 2008 the TMT sector bucked the trend and generated more start-ups than closures, which contributed to the overall firm base.

The City, Westminster and Camden were the main destinations for firms moving out of Tech City.

However, the nature of the Tech City geography may mean that firms that moved premises from one part of Islington to another may be classified as outward migrators even though they have stayed within the borough.

11

The Impact of Firm Migration on the City of London

1500 1000 500 0 -500

What clusters exist in the City and surrounding areas and how have these changed over the last decade?

-1000 -1500 -2000

Net Firm Crea

In 2012, the City’s Financial Services cluster comprised of 2,230 firms, 87,000 employees and produced £9.7bn in output. There is an above average density of businesses and employment in the areas surrounding the City but at a significantly lower level than within the Square Mile.

The density of Financial Services businesses has decreased between 2003 and 2012 both in the City and adjacent areas, suggesting either a reversal in the trend towards co-location, or that mergers have consolidated the number of businesses.

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2004-05

The100 distribution of firms within the Insurance cluster has 0remained consistent over 2003 to 2012, more so than in Financial Services, although the total -100 number of firms has reduced.

-200

Employment densities have altered little within the -300 City and adjacent areas, suggesting a trend of -400 consolidation, where existing firms have increased their -500employment rather than a series of new business starts.

-600 -700

1,000 to 5,000 500 to 1,000 100 to

500

1 to

100

0 to

0

2011-12

2010-11

2009-10

2008-09

2007-08

2005-06

2006-07

Map 2: Count of Financial Services employment in 2012

2004-05

2003-04

-800

5,000 to 15,000

2003-04 2 2004-05

In 2012, the City’s Insurance cluster was composed of 1,200 firms, 50,500 employees and produced £10.4bn in output. Insurance is particularly strong in the east of the City, though there are also concentrations within the adjacent parts of Westminster, Camden, Islington, Hackney and Tower Hamlets.

Per cent of portfolio

Financial Services

Insurance 2003-04

The research identified four key clusters operating within and adjacent to the City: Financial Services, Insurance, Professional Services, and Technology, Media & Telecommunications (TMT)6.

2005-06

-2500

Net Firm C

2003-04 2004-

Figure 12: Change in Insurance firms and employment in the City 2003 to 2012 60,000

2000

58,000 1500

56,000 54,000

1000 52,000 50,000

500

Firms 48,000 46,000

0

12

2003

2012

RESEARCH REPORT CITY OF LONDON CORPORATION

Professional Services In 2012, the Professional Services cluster in the City had 3,780 firms with 79,800 employees that produced £8.1bn in output. The cluster has proved resilient over 2003 to 2012. There is a prevalence of businesses in the west of the City7, forming part of a larger cluster of activity connecting the City with Camden, Westminster and Islington.

Clusters in the centre and the east of the City have seen reductions in employment density, but not firm density, suggesting firms in the centre and east have reduced headcount over time.

Technology, Media & Telecommunications (TMT) In 2012, the City’s TMT cluster had 1,300 firms, and 25,550 employees that produced £2.3bn in output. TMT firms in the north and west of the City8, together with adjacent areas of Hackney, Islington, Westminster and Southwark, have all experienced growth in employment levels, whereas most other areas have remained fairly 81,000 Firms 4000 stable in terms of jobs.

Employment 80,000

TMT employment within the City is focussed in 79,000 and around the Tech City overlap and has remained 78,000 relatively stable between 2003 and 2012.

3000

77,000 2000

In summary:

76,000

n T he Professional Services and TMT clusters have 75,000 grown over the period.

1000 74,000 n T he Financial Services and Insurance clusters have contracted.

73,000 n F inancial Services and Insurance remain the 72,000 0 dominant clusters in terms of jobs and output, 2003 2012 though a process of diversification appears to be underway with an increasing presence in the City of Professional Services and TMT firms.

Figure 13: Change in the number of Professional Services firms and employment in the City 2003 to 2012 4000

81,000

Firms Employment

80,000

78,000 77,000 2000

76,000

1400

Firms

25,800

Employment

25,600

1200

25,400 25,200

1000

25,000 800

24,800 24,600

600

24,400

75,000 400

1000

74,000

Firms

24,200

Employment

73,000 72,000 2003

2012

Employm

24,000

200

0

2003

Figure 14: Change in the number of TMT firms and employment in the City 2003 to 2012

79,000

3000

Firms

23,800 23,600

0 2003

2003

2012

2012

13

2003

The Impact of Firm Migration on the City of London 81,000

1400

80,000

78,000

1000

77,000

800

25,400 25,200

24,800 24,600

600

What is the retail offer 75,000 provided by the City and how 74,000 1000 has this changed over time?

24,400 400

Firms

24,200

Employment

Employm

24,000

200

73,000

23,800

72,000

0 Understanding retail variety

Having a strong retail offer strengthens the ability 2003 2012 of a location to attract businesses. The City’s retail sector is a significant contributor to its business demography. In 2012, there were 22,700 people (6% of City total) employed by 1,900 retail firms (11% of total) based in the City.

2003 2003 understand the

2012 offer

23,600

2012

To retail within the City in more detail, TBR developed the Retail Variety Index (RVI). The RVI is an indexed score that takes into account: the variety of retail activity, the degree of monopolisation, the geographic density of retail and the level of retail independence.

Generally the higher the score the better the retail 150 offer. Output

These firms produced £820m in economic output (2% of the City’s total), at a rate of £36k per employee.Firms This level of productivity is much higher 25,800 1400 than the retail offer in the rest of London (£30k) Employment 25,600 1200 and the UK (£23k) but significantly lower than 25,400 the City’s overall average of £105k. This is in 25,200 1000 line with expectations considering the nature 25,000 of the Financial Services and Insurance sectors, 800 which are most present in the City, compared24,800 to 24,600 the 600 Retail sector.

2003

Employment Firms Compared with all London boroughs, the City 140 has a very strong retail offer, with only Westminster 130 achieving a higher RVI score.

2003

2012

2011

2010

2009

2008

2007

2003

400 24,200 While business migration has played a vital role in the resilience of the City’s overall economy, it has 24,000 200 had only a marginal impact on the Retail sector.

23,800 This0 sector is more affected by the general 23,600 churn of businesses in terms of new 2003 2012business starts and closures.

Per cent of portfolio

120

As Figure 16 shows, when investigating retail variety historically, it is clear that from 2003 to 2008 110 the City continually improved its retail offer.

This 100 RVI trend was interrupted by the recession, and has been significantly volatile since 2008.

Employment Firms A 90 key element in this has been the marked reduction in the number and impact of so-called 80 drinking establishments.

24,400

Gross Va Emp

Firms 2003 2

2012

While retail in the City is strong it has yet to reach pre-2008 levels.

Figure 15: Indexed change in key Retail metrics from 2003 to 2012 (2003=100)

Figure 16: Retail Variety Index (RVI) score for the City of London retail offer from 2003 to 2012 320

Output

150

25,600

25,000

76,000

0

Employment

2004

2000

25,800

1200

79,000

3000

Firms

2006

Employment

2005

Firms

4000

Employment Firms

140

300

130

280

120 260

Emp 200 2012

2011

2010

2009

2008

2007

2006

Firms 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2005

2012

2011

2010

2009

2008

2007

2006

2005

2004

14

2003

80

Gross Value Added 220

2004

90

240

2003

100

Per cent of portfolio

110

2003 RVI2004 Score 2

RESEARCH REPORT CITY OF LONDON CORPORATION

Concluding remarks About the economy

About property demands

The migration of businesses is an area of economics that is particularly underresearched.

However, it is clear from this research that firm migration has played a vital role in the City’s economic revival following the recession.

While the property market has always had to respond to the demand for premises from firms that start, grow and shrink – be they already in the City or moving in – there has been little empirical evidence of the relevant proportions and their respective requirements. This research demonstrates that there are discernible differences between groups of businesses.

The gains from firm movements have largely overcome the net decline attributable to closures and start-ups.

Post 2008, migration has been more prevalent, with increased flows of businesses into and out of the City.

Should this increased propensity for businesses to migrate continue, it should prove positive for the City. Not only will it mean an increase in firms, employment and output, it is also likely to contribute towards the diversification of the City’s economy, in addition to the traditional dominance of Financial Services and Insurance firms.

Serviced premises are clearly important and provide a vital component of the overall offer, especially for new and small firms. Likewise second hand Grade A and, to a lesser extent, Grade B premises are also in demand for businesses seeking their own premises in the City.

15

The Impact of Firm Migration on the City of London

Endnotes 1 The full report is available to download at http://www.cityoflondon.gov.uk/business/economic-researchand-information/research-publications/Pages/ The-impact-of-firm-migration-on-the-City-.aspx 2 TCR is TBR’s longitudinal database of UK companies.

3 EGi is published by Estates Gazette and provides information on property transactions. However, it should be noted that the data provides only a partial view in that it includes properties which are 100m2 or larger, so excludes small premises.

4 Output is defined by Gross Value Added (GVA) – see the ‘Glossary’ in the full report for a detailed definition.

5 All data used in this report is drawn from the TCR and EGi. This use of proprietary data means that there may be some discrepancies with official statistics. See the full report for further details.

6 The clusters are defined using three digit SIC codes. Note, these are different to the sector definitions also employed in this research. See the main report for details.

7 The main ward where professional services are clustered being: Farringdon Without.

8 The main wards where TMT businesses are clustered being: Farringdon Without, Farringdon Within and Coleman Street.

16

RESEARCH REPORT CITY OF LONDON CORPORATION

The Impact of Firm Migration on the City of London RESEARCH REPORT CITY OF LONDON CORPORATION JANUARY 2014

SUMMARY REPORT

www.cityoflondon.gov.uk/economicresearch