טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentDavid Milson
SubjectAn Empiricar Study of the Factors Affecting Headquarter
DepartmentDepartment of Architecture and Town Planning
Supervisor Professor Gat Daniel


Abstract

The role of the modern corporate headquarter office, traditionally assumed to locate in the CBD of the largest metropolitan areas, is the command and control center of the largest industrial firms. These offices have great influence on the functioning and structure of modern cities. Over the last ten years in the US and Britain major cities have witnessed a tremendous increase in the amount of office space built in the CBD. Yet, average vacancy rates for office buildings in the US for 1992 are dangerously high at nearly 20%. In addition, tall corporate hierarchies are tending to become fatter, more responsibility and decision-making power is being given to managers located within the plant itself. This single trend allows corporations to focus strategy, to make quick decisions in an ever faster-changing world marketplace - and abandon corporate offices in the downtown core.

In this study, the spatial concentrations of corporate headquarter offices of the Israel 100 leading industrial enterprises are examined to fined out where Israeli corporate headquarter offices tend to locate and why. Independent variables of proportion of sales going to export, and a technology coefficient were used to explain the tendency of headquarter offices to locate at the principal plant. High Correlation and regression statistics point to use of automation and modern technology, and a highly educated workforce as fitting indicators of the tendency for corporate headquarter offices to1ocate at the principal plant, not in the CBD of Tel Aviv.

Existing trends indicate that as the Israel economy moves into the next decade, larger share of Israel’s export most likely will be in the electronics sector and chemicals sector. Results of this study show headquarter offices of those firms tend to locate next to the principal plant. Those plants locate in the periphery of the three largest metropolitan centers. Firms with corporate headquarter offices in or near the CBD of Tel Aviv, especially those in the food and building sector, tend to sell to the local market.

For planners, the lure of building modern multi-storey office buildings for corporate headquarters in Tel Aviv must be questioned. As Tel Aviv becomes more traffic congested, and as modern telecommunications technologies take a bigger role in the office, a trend toward larger Concentrations of headquarter offices in the CBD of Tel Aviv seems not only unlikely to occur, but at this point quite undesirable.