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European Cities Monitor 2005

© 2005 Cushman & Wakefield Healey & Baker
All rights reserved
Cushman & Wakefield Healey & Baker is part
of Cushman & Wakefield, the premier global
European Cities Monitor
real estate services provider with over 11,000 Executive Summary
employees in some 50 countries.

We deliver, as a truly global real estate company,
integrated solutions to our clients by actively advising,
implementing and managing on behalf of landlords,
tenants and investors through every stage of the real
estate process.
Cushman & Wakefield Healey & Baker has
conducted this survey on Europe’s major business
cities each year since 1990. The underlying data
was researched independently for us by Taylor
Nelson Sofres.

These solutions include helping clients to buy, sell, The study examines the issues companies regard
finance, lease and manage assets. We also provide as important in deciding where to locate, and
valuation advice, strategic planning and research, compares how Europe’s leading business cities
portfolio analysis, site selection and space location perform on each issue.
assistance, among many other advisory services.
Please see our wide range of services below. If you require any assistance on your locational
strategy or with your property, please contact the
Acquisition Portfolio Management Location Analysis Team featured on page 35 who
Agency Leasing Portfolio Strategy will be pleased to discuss how we might help.
Demographic Studies Project Management
Disposals Property Management October 2005.
Facilities Management Rent Review
Fund Management Research & Consultancy
Investment Strategic Advice
Landlord Representation Structured Finance
Location Analysis Tenant Representation
Market Analysis Transaction Management
Planning Valuation Consultancy

1
HIGHLIGHTS FROM THE FINDINGS
Senior Executives from 501 European companies gave their
views on Europe’s leading business cities. The principal
findings are:
The leading cities for business
◆ In the overall rating of best cities for business the top
cities of London and Paris continue to lead by some
margin.
◆ Barcelona overtakes Amsterdam into 5th place and
Madrid also closes up to form a leading group of
seven cities.
◆ The other cities to move up this year are: Berlin (9th to
8th), Lisbon (16th to 14th), Düsseldorf (18th to 16th),
Budapest (23rd to 21st), Glasgow (24th to 22nd),
Copenhagen (26th to 25th), Helsinki (28th to 27th)
and Oslo (30th to 29th).
◆ Valencia and Bucharest head the list of other cities
threatening to break into the top 30.
The key factors in deciding where to locate
◆ Access to markets again leads from the availability of
qualified staff as the single most important factor.
◆ Communication factors remain the most important.
◆ Cost factors come next, with cost of staff the most
important of these. Quality of life factors are the least
significant.
◆ London is the top rated city for access to markets, for
the availability of qualified staff, for international
transport links, telecommunications factors, and for
languages spoken.
◆ Warsaw is again top for the cost of staff, Lisbon for the
value for money of offices, Dublin again comes top for
the climate created by government, Berlin for the
availability of offices, Paris for internal transport,
Barcelona again for quality of life, and Stockholm for
freedom from pollution.
◆ As is to be expected, the importance of factors varies a
little by type of company. The cost of staff is more
important to industrial companies, while cost and
availability of offices are more important for service
companies.
2 3
Impact on business
◆ Companies were asked which of a series of factors was
most likely to impact on their business over the next ten
years. Compared with last year, Asia is now seen as an
opportunity as well as a threat, with the market
opportunity offered by the burgeoning economies of
China and India now seen to be the most significant
factor.
◆ The performance of the Euro economies is the second
most significant factor, with competition from Asia and
the performance of the US economy next.
Relocation/outsourcing
◆ Almost a quarter (23%) of companies sampled had
relocated or outsourced operations to another country
in the last three years.
◆ Eastern Europe has been the favoured destination,
followed by elsewhere in western Europe. China has
overtaken India as the top destination outside Europe.
◆ One in six companies (17%) plans to relocate or
outsource operations in the next two years. Again,
eastern Europe is the favoured destination.
◆ Companies have, and intend to relocate or outsource a
range of their operations but production/assembly is
the most common, followed by distribution/logistics.
Company expansion
◆ Warsaw remains the city that can expect the biggest
influx of companies over the next five years, with 41 of
our sampled companies expecting to locate there. If this
happens, Warsaw would move up to 6th position in
terms of international company representation.
◆ Prague, Moscow and Budapest can also expect a healthy
inflow of companies; and Bucharest is attracting
interest. Paris, London, Madrid and Milan are the most
popular nominations among the more established
business cities.
◆ Worldwide, Shanghai remains the clear favourite –
41 of our companies expect to expand there.
◆ Beijing, followed by Mumbai and Mexico City can all
also expect future investment from Europe.
City promotion The best cities to locate a business today

◆ London and Paris remain the best known cities. This London extends its leading position over Paris but these two
year, only 13 of our top 30 cities are known very or cities are well ahead of their nearest rivals. Barcelona
fairly well by at least half the companies sampled, which overtakes Amsterdam in fifth place with the top seven cities
suggests that cities need to promote themselves more clear of the rest. The small differences in scores of cities
effectively. outside the top seven means that slight changes in score can
produce a movement of several places in the rankings.
◆ Barcelona, Prague and Madrid are seen as the cities
doing the most to improve themselves as business City Rank Weighted
locations. Score
1990 * 2004 2005 2005
◆ In terms of making improvements in cities where
companies are already represented, transport issues are
London 1 1 1 0.87
again what companies call for most. Transport links
with other cities is the single most demanded Paris 2 2 2 0.60
improvement, followed by improvements to traffic Frankfurt 3 3 3 0.33
circulation within the city and public transport Brussels 4 4 4 0.30
provision. Barcelona 11 6 5 0.28

◆ Companies were asked how they arrive at a shortlist Amsterdam 5 5 6 0.24

of cities when considering new locations. The Madrid 17 7 7 0.24
recommendation of other companies located there, Berlin 15 9 8 0.19
and consultants’ advice are the two most frequently Munich 12 8 9 0.18
mentioned factors, followed by general reputation,
Zurich 7 10 10 0.18
media comment, city publications and websites.
Milan 9 11 11 0.15
◆ Most companies said that a city holding a major Dublin - 12 12 0.14
sporting or cultural event would not influence their Prague 23 13 13 0.14
location choice, but that the summer Olympic Games
Lisbon 16 16 14 0.12
was the event that would have the best impact on
Manchester 13 14 15 0.12
a city.
Düsseldorf 6 18 16 0.10
Stockholm 19 15 17 0.10
Geneva 8 17 18 0.10
Hamburg 14 19 19 0.09
Warsaw 25 20 20 0.09
Budapest 21 23 21 0.09
Glasgow 10 24 22 0.08
Vienna 20 22 23 0.07
Lyon 18 21 24 0.07
Copenhagen - 26 25 0.06
Rome - 25 26 0.05
Helsinki - 28 27 0.04
Moscow 24 27 28 0.03
Oslo - 30 29 0.03
Athens 22 29 30 0.03

Base: 501

*In 1990, only 25 cities were included in the study.

4 5
Essential factors for locating business Essential factors by type of business

I’d like to discuss some of the factors companies may consider There is some variance in the importance given to factors by
when deciding where to locate their business. How important to the different types of company sampled: industrial, trading
your company is (each factor)? and service. External transport links and cost of staff are
more significant for industrial companies, while value and
Communication issues continue to dominate, with Access to availability of offices, and ease of travel within the city are
markets again the single most important issue. Availability more important to service companies.
of qualified staff comes a close second.
Industrial Trading Service
2004 2005 Sample Size 207 102 192
% % % % %
Easy access to markets, customers or clients 61 60
Easy access to markets 58 65 60
Availability of qualified staff 56 57
Availability of qualified staff 62 51 55
Transport links with other cities and
internationally 50 52 Transport links to other cities 59 47 47
The quality of telecommunications 47 50 Quality of telecommunications 48 42 57
Cost of staff 39 35 Cost of staff 39 34 31
The climate governments create for business 36 32 Climate created by government 35 27 32
through tax and the availability of financial
Value for money offices 26 29 36
incentives
Languages spoken 27 22 23
Value for money of office space 29 31
Availability of office space 27 30 Availability of offices 27 30 34
Languages spoken 28 24 Ease of travel within the city 19 28 23
Ease of travelling around within the city 25 22 Quality of life 15 14 18
The quality of life for employees 18 16 Freedom from pollution 17 7 13
Freedom from pollution 16 13
“Absolutely essential” responses only are included here.
“Absolutely essential” responses only are included here. “Trading” includes the following sectors: Distribution,
Wholesale, Retail.
Base: 501
Base: 501

6 7
Greatest impact on business The impact of holding a major event

Which of the following factors do you think will have the This year we asked companies about the effect on cities of
greatest impact on your business over the next ten years? holding a major international event.

2004 2005 To what extent can holding a major sporting or cultural event
% % encourage or influence you to locate in that city in the future?

Growth of India/China as markets %

for your company - 25
Performance of Euro economies - 15 A major influence 6
Competition from Asia 29 12 Some influence 10
Performance of the US economy 15 12 Little influence 16
Enlargement of the EU 26 11 No influence 68
Corporate Social Responsibility - 10 It would discourage us 2
Relocation/outsourcing - 10
It seems that holding a major event affects corporate
This year, the growth of India and China as markets for attitudes very little, though it does of course raise the
European companies is seen as likely to have the greatest familiarity level of the city and can entail significant
impact on business over the next ten years. improvement programmes.

Performance of the economies of countries that have In your opinion which event would have the best impact on a
adopted the euro is seen as more likely to impact than global city?
the performance of the US economy.
%

Summer Olympics 56
World Cup football 14
Expo 8
European city of culture 5
Euro...(football championship) 2
Other business event 2
G8 Summit 1
World Climate Summit 1
Americas Cup 1

Clearly, the Summer Olympics is the event which is seen to

have the most impact on a city.

Base: 501

8 9
Familiarity with cities as a business location Familiarity with other European cities

For each city I’d like you to tell me how well you know it as a Are there other European cities which are important as business
business location. Do you know it very well, know it fairly well, locations and which do you know fairly or very well?
or not really know it as a business location?
Our study allows for the 30 major cities to be studied in
There is a wide variation in the degree to which cities are depth. The list of important business cities is, of course,
known which inevitably impacts on their overall ranking as very much longer. This year Valencia heads this list of other
a business location. This is a fundamental issue for any city cities from Bucharest, Birmingham, Leeds and Rotterdam.
to tackle.
City No. of Companies
2005 2004 1990
City % % % Valencia 21
Bucharest 15
London 88 90 94 Birmingham 14
Paris 82 86 94 Leeds 14
Barcelona 69 67 64 Rotterdam 14
Milan 66 63 74 Bristol 12
Brussels 65 69 85 Marseille 12
Frankfurt 64 68 78 Luxembourg 11
Madrid 62 63 68 Bilbao 10
Amsterdam 61 64 67 Edinburgh 10
Munich 60 61 64 Istanbul 9
Berlin 55 58 43 Newcastle 9
Düsseldorf 54 52 61 Sofia 9
Rome 53 57 - Stuttgart 9
Zurich 51 55 67 Toulouse 8
Geneva 48 54 69 Turin 8
Hamburg 45 48 58 Cardiff 7
Lisbon 44 48 44 Cologne 7
Prague 44 44 16 Seville 7
Vienna 44 47 50 Bratislava 6
Lyon 40 42 43 Lille 6
Dublin 38 41 - Liverpool 6
Manchester 36 40 32 St. Petersburg 6
Stockholm 33 35 40
Copenhagen 31 37 - Base:501
Budapest 30 28 20
Moscow 27 29 24
Glasgow 26 27 26
Warsaw 26 27 15
Athens 25 29 25
Oslo 24 26 -
Helsinki 22 23 -

The percentages are the proportion of all respondents who

know each city very or fairly well.

Base:501
10 11
Cities improving themselves How current business locations can be improved

Which European cities do you think are doing the most to Thinking of the city where you are located, what are the key
actually improve themselves? things you would like to see the city doing which would
improve it as a business location for your company?
The cities seen as doing the most to improve themselves are
again Barcelona, followed by Prague, Madrid, Budapest and Transport issues again dominate companies’ thinking when
Warsaw. they suggest how their current city locations could be
improved.
City %
2004 2005
Barcelona 20
% %
Prague 19
Madrid 17 Improve transport links with other cities 32 33
Budapest 13 Improve traffic circulation 32 30
Warsaw 13 Improve public transport 36 29
London 12 Lower community taxes 13 15
Berlin 11 Reduce bureaucracy 6 7
Paris 11 Improve telecommunications 5 6
Dublin 10 Improve shopping/leisure for workers 8 6
Lisbon 8 Better supply of qualified workers 4 5
Manchester 5 Less pollution 6 5
Brussels 5 Improve parking 4 3
Moscow 5 Improve security - 2
Vienna 4 Cleaner streets 2 1
Athens 4
Milan 4 Base: 501
Munich 3
Amsterdam 3
Frankfurt 3
Hamburg 2
Zurich 2
Lyon 2
Glasgow 2
Düsseldorf 2
Geneva 2
Rome 2
Stockholm 2

Base: 501

12 13
Increasingly, companies are showing a willingness to move Relocating/outsourcing – the next 2 years
their operations. This movement is often international as
companies adopt a global view. And thinking about your existing European activities, are you
thinking of outsourcing or relocating any of them to another
Relocating/outsourcing – the last 3 years country in the next two years?
Thinking about your existing European activities, have you
One in six companies (17%) are thinking of relocating or
outsourced or relocated any of them to another country in the
outsourcing European activities to another country in the
past three years?
next two years.
Nearly a quarter of companies sampled (23%) have relocated or
outsourced operations to another country in the past three years.
Can you tell me if this is likely to be…(list of locations)?
Can you tell me if this was…(list of locations)?
Again, Central & Eastern Europe is the favoured destination.
Central & Eastern Europe has again been the favourite
destination, but China and India have seen big increases in 2004 2005
share of relocations. % %
2004 2005
% % New EU countries in Central &
Eastern Europe 51 52
New EU Central & Eastern Europe 45 45 China 22 29
Other West European country 38 44 Other West European country 24 25
China 15 31 India 22 23
India 18 26 Eastern Europe outside EU - 21
Eastern Europe outside EU - 19 SE Asia 2 10
SE Asia - 14 Latin America 3 10
Latin America - 9 South Africa 3 3
North Africa 3 6
South Africa 1 6 Base: 87
Middle East 2 -
North America 2 -
Again, we asked companies intending to relocate
or outsource which part of their operations they
Base:116 expected this to be.

This year we asked companies that have What functions of your operation are likely to be affected?
relocated/outsourced what part of their
operations this had been. The expectation is that it will continue to be
production/assembly that is most likely to be outsourced.
What function of your operation was affected?
%
Most corporate activities had been relocated or outsourced
by some companies, but production and assembly was the Production/assembly 61
most common.
Distribution/logistics 32
% %
Administration/support 29
Production/assembly 59 Marketing/sales support 14 Call centre operations 15
Distribution/logistics 33 Research & Development 11 Marketing/sales support 13
Administration/support 29 Other 9 Research & Development 11
Call centre operation 22 Other 7

Base: 116 Base: 87

Administration/support includes Finance, Legal, IT and HR. Administration/support includes Finance, Legal, IT and HR.

14 15
How companies shortlist cities Future expansion

When considering which cities to locate in – whether in Europe Each year we ask companies about their future expansion
or elsewhere in the world – where do you or your company get plans.
information from, in order to build a shortlist?
Existing representation
Companies consult a range of sources in drawing up a
In which European cities, east or west, do you already have
shortlist, the most common being companies already located
offices, manufacturing, distribution or sales outlets?
in the city and consultants.
% Representation is very broadly spread. The fact that no city
has half our sample represented suggests there is still room
Other companies located there 68 for considerable expansion.
Consultancy advice 63
Rank % Rank %
General reputation 53
Media comment 44 1 Paris 40 25 Athens 11
City publications 38 2 London 34 26 Geneva 11
City websites 36 3 Barcelona 30 27 Copenhagen 11
Internally 6 4 Madrid 29 28 Oslo 10
Chamber of Commerce 5 5 Milan 25 29 Helsinki 10
Local Authority 3 6 Brussels 23 30 Glasgow 8
Embassy 2 7 Warsaw 20 31 Bucharest 5
8 Amsterdam 20 32 Valencia 5
Base: 501
9 Berlin 19 33 Seville 4
10 Prague 19 34 Stuttgart 4
11 Munich 19 35 Antwerp 4
12 Frankfurt 18 36 Bratislava 4
13 Lisbon 18 37 Istanbul 4
14 Moscow 17 38 Birmingham 3
15 Vienna 16 39 Edinburgh 3
16 Rome 15 40 Bilbao 3
17 Budapest 14 41 Hannover 3
18 Stockholm 14 42 Luxembourg 3
19 Lyon 14 43 Porto 3
20 Düsseldorf 13 44 Rotterdam 3
21 Dublin 13 45 St. Petersburg 3
22 Zurich 13 46 Bristol 3
23 Hamburg 13 47 Turin 3
24 Manchester 12

Base: 501

16 17
Future expansion – Europe

This map shows the number of companies expecting to

locate, within the next five years, in the cities shown.

Helsinki 3

St Petersburg 6
Oslo 3
Stockholm 7 Tallinn 6

Riga 11 Moscow 32

Dublin 7 Copenhagen 5
Manchester 3

Amsterdam 12 Hamburg 2
London 20
Berlin 2 Warsaw 41

Brussels 6
Düsseldorf 2
Krakow 2
Kiev 9
Luxembourg 2 Prague 34
Frankfurt 3

Paris 22 Strasbourg 2
Stuttgart 2
Bratislava 9
Munich 6 Vienna 8
Zurich 3 Budapest 32
Ljubljana 3
Geneva 4

Lyon 6
Zagreb 4 Belgrade 8
Venice 3
Milan 16 Bucharest 18
Porto 4

Madrid 17

Barcelona 14 Sofia 12
Lisbon 8 Rome 10

Istanbul 4

Athens 10

18 19
The changing order Worldwide expansion

If we were to assume that, over the next five years, companies We asked about global expansion, to new locations.
do carry out their anticipated expansion plans (by adding pp
20-21 to p19) then the pattern of representation in 2010 In which worldwide cities outside Europe, where your company
would be as below. is not currently represented, do you think you will expand in 5
years time?
Envisaged 2010
China can again expect to see the biggest influx with
Rank % Rank %
Shanghai and Beijing dominating plans, ahead of Mumbai
1 Paris 41 23 Hamburg 13 and Mexico City.
2 London 38 24 Athens 13 City No. of companies
3 Barcelona 33 25 Manchester 13
3 Madrid 33 26 Geneva 12 Shanghai 41
5 Milan 29 27 Copenhagen 12 Beijing 25
6 Warsaw 28 28 Oslo 11 Mumbai 16
7 Prague 26 29 Helsinki 10 Mexico City 15
8 Brussels 24 30 Bucharest 9 New Delhi 11
8 Moscow 24 31 Glasgow 8 Tokyo 11
10 Amsterdam 22 32 Bratislava 5 São Paulo 11
11 Budapest 21 33 Valencia 5 Buenos Aires 10
12 Munich 20 34 Stuttgart 5 New York 10
13 Berlin 20 35 Istanbul 4 Sydney 8
14 Lisbon 19 35 Seville 4 Miami 6
15 Frankfurt 18 37 St. Petersburg 4 Johannesburg 6
16 Vienna 17 38 Porto 4 Singapore 6
17 Rome 17 38 Antwerp 4 Cape Town 4
18 Stockholm 15 38 Sofia 4 Seoul 4
19 Lyon 15 41 Luxembourg 3 Washington DC 4
20 Dublin 15 42 Birmingham 3 Bangalore 3
21 Düsseldorf 14 42 Edinburgh 3 Bangkok 3
22 Zurich 14 42 Rotterdam 3 Chicago 3
Hong Kong 3
Base: 501 Istanbul 3
Manila 3
Rio de Janeiro 3

Base: 501 Companies

20 21
Best cities in terms of easy access to markets Best cities in terms of qualified staff

Which city do you think is best in terms of easy access to Which city do you think is best in terms of availability of
markets, customers or clients? Which is second best? And which qualified staff? Which is second best? And which is third?
is third?
London retains its strong lead over Paris and Frankfurt.
London and Paris both score very strongly in terms of access
to markets.
City Rank Score City Rank Score

2005 2004 2005 2004 2005 2004 2005 2004

Amsterdam 6 7 0.39 0.35 Amsterdam 9 7 0.35 0.35

Athens 29 27 0.04 0.06 Athens 30 30 0.02 0.01
Barcelona 9 9 0.30 0.30 Barcelona 11 9 0.30 0.30
Berlin 11 5 0.28 0.38 Berlin 7 5 0.40 0.38
Brussels 4 4 0.54 0.44 Brussels 4 5 0.44 0.38
Budapest 25 21 0.07 0.13 Budapest 18 23 0.21 0.13
Copenhagen 29 28 0.04 0.05 Copenhagen 21 21 0.18 0.14
Dublin 21 23 0.13 0.10 Dublin 15 15 0.23 0.26
Düsseldorf 14 12 0.22 0.22 Düsseldorf 15 14 0.23 0.27
Frankfurt 3 3 0.71 0.70 Frankfurt 3 3 0.58 0.59
Geneva 23 22 0.12 0.12 Geneva 22 20 0.16 0.15
Glasgow 15 14 0.20 0.19 Glasgow 19 18 0.20 0.17
Hamburg 12 16 0.25 0.18 Hamburg 15 17 0.23 0.19
Helsinki 27 29 0.05 0.04 Helsinki 23 21 0.12 0.14
Lisbon 27 25 0.05 0.07 Lisbon 28 29 0.07 0.04
London 1 1 1.36 1.25 London 1 1 1.32 1.32
Lyon 17 13 0.17 0.21 Lyon 20 26 0.19 0.10
Madrid 5 11 0.41 0.29 Madrid 11 9 0.30 0.30
Manchester 10 7 0.29 0.35 Manchester 13 13 0.29 0.29
Milan 7 6 0.38 0.36 Milan 10 8 0.33 0.33
Moscow 18 14 0.16 0.19 Moscow 26 28 0.09 0.08
Munich 8 9 0.31 0.30 Munich 5 4 0.43 0.46
Oslo 26 30 0.06 0.02 Oslo 24 27 0.11 0.09
Paris 2 2 1.18 1.13 Paris 2 2 0.78 0.77
Prague 21 25 0.13 0.07 Prague 24 19 0.11 0.16
Rome 24 23 0.08 0.10 Rome 29 23 0.05 0.13
Stockholm 18 18 0.16 0.17 Stockholm 8 9 0.36 0.30
Vienna 16 20 0.18 0.15 Vienna 26 25 0.09 0.11
Warsaw 18 18 0.16 0.17 Warsaw 14 16 0.28 0.20
Zurich 13 16 0.24 0.18 Zurich 6 9 0.41 0.30

The score is derived from the number of nominations for The score is derived from the number of nominations for
best, second best, and third best. best, second best and third best.

Base: All familiar with each location Base: All familiar with each location.

22 23
Best cities in terms of external transport links
Which city do you think is best in terms of transport links with
other cities and internationally? Which second best? And which
third?
Best cities in terms of quality of
telecommunications
Which city do you think is best in terms of quality of
telecommunications? Which second best? And which third?

London, Paris and Frankfurt again score very strongly for London, Paris, Frankfurt and Stockholm are seen as having
their links with other cities. the best telecommunications.

City Rank Score City Rank Score

2005 2004 2005 2004 2005 2004 2005 2004

Amsterdam 4 4 0.66 0.70 Amsterdam 9 7 0.32 0.34

Athens 28 23 - 0.06 Athens 30 25 - 0.03
Barcelona 10 12 0.26 0.19 Barcelona 13 15 0.21 0.17
Berlin 12 10 0.19 0.22 Berlin 8 6 0.33 0.36
Brussels 5 5 0.55 0.51 Brussels 5 5 0.40 0.37
Budapest 26 26 0.03 0.03 Budapest 28 29 0.01 -
Copenhagen 13 14 0.18 0.16 Copenhagen 20 13 0.14 0.21
Dublin 19 22 0.09 0.09 Dublin 16 19 0.17 0.14
Düsseldorf 14 13 0.17 0.18 Düsseldorf 18 16 0.16 0.16
Frankfurt 3 3 1.19 1.20 Frankfurt 3 3 0.58 0.66
Geneva 15 17 0.16 0.14 Geneva 16 20 0.17 0.12
Glasgow 16 20 0.15 0.10 Glasgow 21 16 0.10 0.16
Hamburg 17 17 0.14 0.14 Hamburg 19 16 0.15 0.16
Helsinki 28 29 - 0.02 Helsinki 6 8 0.36 0.33
Lisbon 23 26 0.05 0.03 Lisbon 24 26 0.04 0.02
London 1 1 1.74 1.53 London 1 1 1.22 1.27
Lyon 18 15 0.12 0.15 Lyon 23 22 0.05 0.08
Madrid 6 9 0.30 0.26 Madrid 11 12 0.24 0.22
Manchester 8 7 0.27 0.28 Manchester 12 14 0.22 0.19
Milan 11 11 0.23 0.20 Milan 14 10 0.20 0.27
Moscow 27 26 0.01 0.03 Moscow 28 29 0.01 -
Munich 7 7 0.28 0.28 Munich 10 9 0.27 0.31
Oslo 28 29 - 0.02 Oslo 15 20 0.18 0.12
Paris 2 2 1.42 1.39 Paris 2 2 0.80 0.91
Prague 23 24 0.05 0.05 Prague 26 28 0.02 0.01
Rome 20 15 0.07 0.15 Rome 24 24 0.04 0.05
Stockholm 20 20 0.07 0.10 Stockholm 4 4 0.50 0.48
Vienna 20 19 0.07 0.13 Vienna 22 23 0.06 0.07
Warsaw 25 24 0.04 0.05 Warsaw 26 26 0.02 0.02
Zurich 8 6 0.27 0.30 Zurich 7 11 0.34 0.24

The score is derived from the number of nominations for The score is derived from the number of nominations for
best, second best and third best. best, second best, and third best.

Base: All familiar with each location. Base: All familiar with each location.

24 25
Best cities in terms of cost of staff
Which city do you think is best in terms of cost of staff?
Which second best? And which third?
Warsaw, Budapest, Prague and Lisbon all score very strongly
again for cost of staff. Scores on this factor polarise between
the top eleven cities and the rest.
Best cities in terms of the climate governments
create
Which city do you think is best in terms of climate governments
create for business through tax policies and availability of
financial incentives? Which second best? And which third?
Dublin has a clear lead in being seen as having the best
climate created for business, ahead of Prague, Budapest
and Warsaw.

City Rank Score City Rank Score

2005 2004 2005 2004 2005 2004 2005 2004

Amsterdam 17 12 0.16 0.22 Amsterdam 10 8 0.34 0.36

Athens 7 9 0.70 0.55 Athens 19 25 0.16 0.09
Barcelona 6 5 0.73 0.69 Barcelona 8 8 0.40 0.36
Berlin 12 15 0.27 0.20 Berlin 14 17 0.26 0.17
Brussels 15 21 0.19 0.18 Brussels 9 10 0.36 0.33
Budapest 2 3 1.38 1.04 Budapest 3 4 0.66 0.53
Copenhagen 24 25 0.11 0.11 Copenhagen 22 18 0.14 0.16
Dublin 8 7 0.60 0.61 Dublin 1 1 1.36 1.05
Düsseldorf 17 22 0.16 0.16 Düsseldorf 23 28 0.11 0.06
Frankfurt 28 26 0.05 0.08 Frankfurt 23 27 0.11 0.08
Geneva 28 30 0.05 0.03 Geneva 12 13 0.32 0.26
Glasgow 5 8 0.95 0.57 Glasgow 13 11 0.31 0.28
Hamburg 17 22 0.16 0.16 Hamburg 28 29 0.07 0.05
Helsinki 22 12 0.15 0.22 Helsinki 19 21 0.16 0.12
Lisbon 4 4 1.16 1.00 Lisbon 10 12 0.34 0.27
London 22 24 0.15 0.15 London 6 6 0.51 0.48
Lyon 16 12 0.18 0.22 Lyon 19 21 0.16 0.12
Madrid 8 5 0.60 0.69 Madrid 5 5 0.52 0.49
Manchester 10 11 0.57 0.38 Manchester 15 14 0.25 0.23
Milan 13 15 0.21 0.20 Milan 23 21 0.11 0.12
Moscow 10 10 0.57 0.53 Moscow 18 19 0.19 0.14
Munich 26 26 0.07 0.08 Munich 26 24 0.10 0.10
Oslo 28 29 0.05 0.06 Oslo 29 30 0.05 0.04
Paris 24 20 0.11 0.18 Paris 17 14 0.20 0.23
Prague 3 2 1.36 1.14 Prague 2 2 0.70 0.61
Rome 13 17 0.21 0.19 Rome 30 25 0.03 0.09
Stockholm 17 17 0.16 0.19 Stockholm 26 19 0.10 0.14
Vienna 17 17 0.16 0.19 Vienna 16 16 0.24 0.20
Warsaw 1 1 1.68 1.44 Warsaw 4 3 0.57 0.57
Zurich 26 28 0.07 0.07 Zurich 6 7 0.51 0.42

The score is derived from the number of nominations for The score is derived from the number of nominations for
best, second best and third best. best, second best and third best.

Base: All familiar with each location. Base: All familiar with each location.
26 27
Best cities in terms of value for money of office
space
Which city do you think is best in terms of value for money of
office space? Which second best? And which third?
Lisbon, Warsaw and Prague are seen to offer the best value
offices, ahead of Glasgow and Budapest.
City Rank Score
Best cities in terms of availability of office space
Which city do you think is best in terms of availability of office
space? Which second best? And which third?
Berlin, Madrid, London and Manchester are seen as best for
available office space, though all cities attract support.
City Rank Score

2005 2004 2005 2004 2005 2004 2005 2004

Amsterdam 16 14 0.28 0.33 Amsterdam 16 15 0.26 0.26

Athens 7 16 0.52 0.29 Athens 30 26 0.02 0.13
Barcelona 6 4 0.57 0.58 Barcelona 5 5 0.46 0.43
Berlin 7 9 0.52 0.41 Berlin 1 2 0.63 0.51
Brussels 12 12 0.44 0.35 Brussels 8 7 0.42 0.33
Budapest 5 7 0.64 0.49 Budapest 21 17 0.19 0.24
Copenhagen 22 18 0.19 0.24 Copenhagen 23 22 0.16 0.18
Dublin 10 5 0.48 0.57 Dublin 11 8 0.33 0.32
Düsseldorf 17 13 0.26 0.34 Düsseldorf 19 12 0.24 0.27
Frankfurt 17 18 0.26 0.24 Frankfurt 6 6 0.45 0.41
Geneva 28 30 0.07 0.06 Geneva 27 30 0.07 0.06
Glasgow 4 5 0.68 0.57 Glasgow 6 8 0.45 0.32
Hamburg 14 15 0.32 0.30 Hamburg 14 15 0.29 0.26
Helsinki 15 26 0.31 0.12 Helsinki 22 27 0.17 0.11
Lisbon 1 3 0.86 0.59 Lisbon 11 21 0.33 0.19
London 24 22 0.18 0.22 London 3 1 0.55 0.58
Lyon 13 10 0.40 0.39 Lyon 24 20 0.12 0.20
Madrid 10 10 0.48 0.39 Madrid 2 3 0.58 0.50
Manchester 7 8 0.52 0.42 Manchester 4 12 0.50 0.27
Milan 26 17 0.17 0.25 Milan 20 19 0.21 0.21
Moscow 26 25 0.17 0.14 Moscow 28 24 0.05 0.14
Munich 22 18 0.19 0.24 Munich 16 12 0.26 0.27
Oslo 30 29 0.04 0.08 Oslo 28 24 0.05 0.14
Paris 21 21 0.20 0.22 Paris 9 3 0.39 0.50
Prague 3 2 0.73 0.61 Prague 14 18 0.29 0.22
Rome 28 28 0.07 0.11 Rome 26 29 0.08 0.07
Stockholm 19 24 0.23 0.19 Stockholm 13 11 0.30 0.30
Vienna 20 23 0.22 0.21 Vienna 25 27 0.09 0.11
Warsaw 2 1 0.77 0.72 Warsaw 10 8 0.38 0.32
Zurich 24 26 0.18 0.12 Zurich 18 22 0.25 0.18

The score is derived from the number of nominations for The score is derived from the number of nominations for
best, second best and third best. best, second best, and third best.

Base: All familiar with each location. Base: All familiar with each location.

28 29
Best cities in terms of languages spoken Best cities in terms of internal transport

Which city do you think is best in terms of the languages Which city do you think is best in terms of ease of travelling
spoken? Which second best? And which third? around within the city? Which second best? And which third?

London, Brussels and Amsterdam score very strongly for Paris and London are seen as the easiest cities in which to
languages spoken. travel around.
City Rank Score City Rank Score

2005 2004 2005 2004 2005 2004 2005 2004

Amsterdam 3 2 1.00 1.05 Amsterdam 12 7 0.34 0.40

Athens 30 27 0.04 0.06 Athens 30 29 0.02 0.04
Barcelona 13 12 0.22 0.21 Barcelona 5 4 0.45 0.48
Berlin 10 9 0.34 0.30 Berlin 3 7 0.53 0.40
Brussels 2 3 1.13 0.94 Brussels 12 10 0.34 0.35
Budapest 21 20 0.13 0.12 Budapest 28 25 0.05 0.11
Copenhagen 9 16 0.38 0.18 Copenhagen 14 13 0.33 0.30
Dublin 11 12 0.28 0.21 Dublin 17 20 0.24 0.18
Düsseldorf 21 22 0.13 0.10 Düsseldorf 20 16 0.20 0.23
Frankfurt 5 6 0.53 0.44 Frankfurt 7 6 0.41 0.44
Geneva 7 7 0.47 0.42 Geneva 20 15 0.20 0.26
Glasgow 26 22 0.10 0.10 Glasgow 8 13 0.39 0.30
Hamburg 18 17 0.16 0.17 Hamburg 16 16 0.28 0.23
Helsinki 19 27 0.15 0.06 Helsinki 11 20 0.37 0.18
Lisbon 23 29 0.12 0.05 Lisbon 22 24 0.19 0.12
London 1 1 1.41 1.49 London 2 1 1.09 1.09
Lyon 29 30 0.05 0.03 Lyon 19 18 0.21 0.19
Madrid 14 12 0.21 0.21 Madrid 9 12 0.38 0.31
Manchester 16 10 0.19 0.27 Manchester 14 10 0.33 0.35
Milan 17 15 0.17 0.20 Milan 22 18 0.19 0.19
Moscow 28 22 0.06 0.10 Moscow 26 29 0.11 0.04
Munich 12 11 0.27 0.23 Munich 4 3 0.49 0.50
Oslo 15 22 0.20 0.10 Oslo 25 22 0.14 0.14
Paris 6 4 0.50 0.60 Paris 1 2 1.19 1.05
Prague 25 18 0.11 0.16 Prague 24 26 0.15 0.10
Rome 27 26 0.07 0.08 Rome 29 27 0.04 0.08
Stockholm 8 8 0.45 0.41 Stockholm 6 5 0.44 0.46
Vienna 20 19 0.14 0.12 Vienna 18 23 0.22 0.13
Warsaw 23 21 0.12 0.11 Warsaw 27 27 0.06 0.08
Zurich 4 5 0.66 0.45 Zurich 9 9 0.38 0.36

The score is derived from the number of nominations for The score is derived from the number of nominations for
best, second best, and third best. best, second best, and third best.

Base: All familiar with each location. Base: All familiar with each location.

30 31
Best cities in terms of the quality of life for Best cities in terms of freedom from pollution
employees
Which city do you think is best in terms of freedom from
Which city do you think is best in terms of quality of life for pollution? Which second best? And which third?
employees? Which second best? And which third?
The Scandinavian and Swiss cities all score well filling the
Barcelona has a clear lead as the city offering the best quality top six places. Stockholm again leads from Oslo as this years
of life for employees, ahead of Paris, Stockholm, Munich cleanest city.
and Madrid.
City Rank Score City Rank Score

2005 2004 2005 2004 2005 2004 2005 2004

Amsterdam 17 8 0.30 0.43 Amsterdam 11 8 0.41 0.46

Athens 27 28 0.10 0.08 Athens 28 29 0.04 0.04
Barcelona 1 1 1.21 1.06 Barcelona 10 10 0.44 0.43
Berlin 22 20 0.24 0.24 Berlin 20 19 0.17 0.18
Brussels 14 14 0.38 0.35 Brussels 19 15 0.18 0.26
Budapest 28 26 0.05 0.11 Budapest 22 23 0.14 0.13
Copenhagen 19 15 0.27 0.33 Copenhagen 6 7 0.82 0.60
Dublin 9 13 0.45 0.36 Dublin 7 9 0.65 0.44
Düsseldorf 24 27 0.17 0.10 Düsseldorf 18 16 0.22 0.24
Frankfurt 26 24 0.14 0.13 Frankfurt 23 22 0.12 0.14
Geneva 7 7 0.49 0.48 Geneva 4 3 0.91 0.86
Glasgow 16 22 0.31 0.21 Glasgow 14 14 0.36 0.30
Hamburg 19 19 0.27 0.25 Hamburg 13 12 0.40 0.33
Helsinki 18 23 0.29 0.15 Helsinki 5 5 0.90 0.69
Lisbon 11 9 0.43 0.40 Lisbon 11 11 0.41 0.35
London 13 9 0.39 0.40 London 27 24 0.06 0.10
Lyon 15 15 0.34 0.33 Lyon 15 19 0.27 0.18
Madrid 5 5 0.61 0.59 Madrid 21 25 0.16 0.09
Manchester 22 17 0.24 0.26 Manchester 17 18 0.23 0.20
Milan 21 21 0.26 0.23 Milan 29 28 0.03 0.06
Moscow 30 29 - 0.02 Moscow 30 30 0.01 -
Munich 4 4 0.62 0.61 Munich 8 6 0.52 0.63
Oslo 8 9 0.46 0.40 Oslo 2 2 1.28 1.01
Paris 2 3 0.67 0.64 Paris 26 21 0.10 0.15
Prague 25 25 0.15 0.12 Prague 16 17 0.26 0.21
Rome 12 12 0.41 0.39 Rome 23 26 0.12 0.08
Stockholm 3 2 0.65 0.68 Stockholm 1 1 1.29 1.26
Vienna 10 17 0.44 0.26 Vienna 9 12 0.47 0.33
Warsaw 29 29 0.01 0.02 Warsaw 25 27 0.11 0.07
Zurich 6 6 0.55 0.51 Zurich 3 4 0.94 0.82

The score is derived from the number of nominations for The score is derived from the number of nominations for
best, second best, and third best. best, second best, and third best.

Base: All familiar with each location. Base: All familiar with each location.

32 33
How the survey was conducted
In total, 501 companies were surveyed from nine European
countries. The sample was systematically selected from
“Europe’s 15,000 largest companies”.
A representative sample of industrial, trading and services
companies were included. The sample changes typically by
around half of the companies each year.
The interviewees were Senior Managers or Board Directors,
with responsibility for location.
All interviews were conducted by telephone in June/July
2005 by mother tongue interviewers. Interviews took an
average of 20 minutes to complete.
The Scores
The scores shown for each city throughout the report are
based on the responses and weighted by Taylor Nelson
Sofres according to nominations for the best, second best,
and third best. Each score provides a comparison with other
cities’ scores and over time for the same city.
The Cities
The cities originally selected in 1990 for the sample were
those we perceived to have the strongest business
representation. Over the years of the study, we have added
further cities nominated by respondents as important.
From time to time, we formally check representation in
cities to ensure our main list of cities remains valid.
Further copies of this report are obtainable from:
European Research Group
Cushman & Wakefield Healey & Baker
43/45 Portman Square
London W1A 3BG
Tel: 44 (0) 20 7935 5000
Fax: 44 (0) 20 7152 5360
This document is for general informative purposes only.
The information in it is believed to be correct, but cannot be guaranteed, and the opinions
in it constitute our judgement as of this date but are subject to change. Reliance should not
be placed upon the information, forecasts and opinions set out therein for the purpose of
any particular transaction, and Cushman & Wakefield Healey & Baker cannot accept any
liability, whether in negligence or otherwise, arising from such use.
34
Location analysis service
Cushman & Wakefield Healey & Baker can assist in identifying
the best location, nationally or globally, to meet an organisation’s
business objectives. Using an analytical approach to distil the
requisite information enables an objective, informed final location
decision to be made. The service is run out of the European
Research Group to provide an independent and objective analysis
of potential locations.
The location consulting process investigates all the criteria that are
critical to the successful operation of the organisation. A mix of
qualitative and quantitative factors will invariably be the main
drivers for most location decisions.
These criteria typically fall within six broad categories:
◆ Demographics
◆ Labour force availability, quality and cost.
◆ Business costs including real estate issues such as costs,
availability and lease flexibility.
◆ Access to markets and/or existing corporate locations
◆ Operating environment
◆ Quality of life
Our process involves ranking and weighting models that measure
any combination of these factors to determine the most desirable
and for cost effective locations for a corporate. Typically our
solutions are multi-phased, enabling macro to micro level analysis
to be undertaken.
Cushman & Wakefield Healey & Baker’s extensive geographical
coverage allows us to provide the most up-to-date and reliable
information on a wide variety of markets – enabling corporate
occupiers to respond more rapidly to changing market conditions.
We continuously monitor all aspects of European property markets
through our systematic collection of information on trends, rents,
new developments and activities of the key players.
Contact Details
Elaine Rossall (European Research Group)
E-mail: elaine.rossall@eur.cushwake.com
Tel: + 44 (0)20 7152 5319
Michael Creamer (Client Solutions)
E-mail: michael.creamer@eur.cushwake.com
Tel: + 44 (0)20 7152 5080
www.cushmanwakefield.com
35
NOTES

36