Companies are moving from California to Texas
The Texas economy is still booming. According to the Governor's Office of Economic Development and Tourism, there has been a huge rise in companies working on relocation or expansion projects. Since the start of the pandemic, nearly 250 new projects have been added.
The economy in Texas is still booming. According to the Governor's Office of Economic Development and Tourism, there has been a huge rise in companies working on relocation or expansion projects. Since the start of the pandemic, nearly 250 new projects have been added.
Oracle moved its headquarters to Austin, Texas, back in 2020. Tesla is building a breathtaking giant factory here, and Apple is putting up its second-largest campus in the Texas capital. This influx of Big Tech has prompted the first articles suggesting that Texas could rise to become a business hub that rivals Silicon Valley.
CBRE and Charles Schwab have already moved their headquarters from California to Texas, and Hewlett Packard Enterprise is in the middle of relocating. But Texas isn't just a magnet for big companies and the wealthy. In 2020, Texas recorded the largest population growth of any state.
Many reasons at once
For decades, Silicon Valley's many tech firms drew in talent. Today, sky-high housing costs, high taxes and strict regulations make living, working and doing business there harder.
William Fulton, director of the Kinder Institute for Urban Research, sees big advantages for Texas on exactly these points. The Lone Star State is known for spacious homes, a low cost of living and a business-friendly environment.
Job Hammond of the Austin Board of Realtors names Facebook and Google as two global players looking for large office space in Austin. His sense, though, is that every company is interested in growing its presence in Austin. The same goes for workers, who value Texas for its high quality of life, attractive property prices and, in some cases, avoiding state income tax. Hammond sees this trend not only among Americans: more and more investors from European countries such as Germany and from Asia are looking for property in Texas.
Eric Willet, Director of Research and Thought Leadership at commercial real estate firm CBRE, points to another reason. In many industries, California's market is saturated, and a second location makes sense for diversifying a company's talent base.
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Consultation & implementation
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