Public companies in Dallas-Fort Worth now have a combined value of $1.5 trillion, a number that has doubled in the last five years.
Thanks to its business-friendly policies and affordable living costs, Texas is becoming a hotspot for corporate headquarters, especially for companies relocating from California. This shift is causing states to lose significant tax revenues as more businesses move south.
Visual Capitalist’s Dorothy Neufeld provides a graphic illustrating the fastest growing and declining headquarter markets in America, based on data from CBRE.
Corporate Headquarters Are Shifting to Texas
Here are the top five markets in the U.S. that have gained the most headquarters since 2018:
With Texas being the best state for business, three of the top five markets in the nation are located in the Lone Star State.
Factors driving this relocation include a growing talent pool, no corporate or personal income tax, and minimal bureaucracy. Noteworthy companies like Chevron, Charles Schwab, and SpaceX have all moved their headquarters to Texas since 2018.
Furthermore, companies are expanding their operations in the state. For example, Goldman Sachs plans to increase its workforce in Dallas to 5,000 employees, up from 970 in 2016.
U.S. Markets Seeing Headquarters Departures
In contrast, California is witnessing a mass exodus of corporate headquarters.
With home prices at least 50% higher than in Texas and the fifth-highest tax burden in the nation, California has lost over 275 headquarters since 2018.
The San Francisco Bay Area has been hit the hardest, facing one of the highest office vacancy rates in the country, as shown in the table above.
For more insights on population growth related to this topic, explore this graphic highlighting the fastest growing states since 2003.
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