The list of California companies that have moved their corporate headquarters to the Dallas-Fort Worth subway includes CBRE, Charles Schwab Corp. metros in Tennessee, Arizona and Nevada are also having great success in attracting California corporate headquarters to their states. In addition to Silicon Valley technology companies that have already left California for Texas last year, Charles Schwab moved its corporate headquarters from San Francisco to Dallas. Companies that left acquired at least 133 million square feet elsewhere, and probably much more because that information often didn't appear on source materials, Vranich said.
The Hoover Institution study identified high tax rates, punitive regulations, high labor costs, high utility and energy costs, and a decline in quality of life for many Californians, reflecting cost of living and housing affordability as reasons why businesses move of the state. Some of the most notable companies that left California during this period are Apple AAPL (its headquarters in the United States moved from Santa Clara to Austin, TX), Nestle USA (Los Angeles to Arlington, VA) and Oracle ORCL (San Mateo to Austin, TX). While it may be an exaggeration to say that California is hemorrhaging people, some of the state's top companies and wealthiest residents are going to states like Texas, Arizona and Florida. While businesses large and small are mostly moving to Texas, other destinations include Arizona, Tennessee, Florida, and a few other states.
Dropbox, Twitter and Facebook are among the Bay Area companies that have already offered permanent remote work to most employees. First Foundation, a California bank, moved its holding company to Dallas; Digital Realty Trust moved its data center to Austin, following Oracle, Hewlett Packard Enterprise and Tesla, who announced their exodus last year. Oracle and Hewlett-Packard are among the Fortune 500 technology companies that have moved their respective headquarters out of California, with both opting for Texas. Read the full Hoover Institution report for more reasons attributed to why companies are moving out of California.
This may not seem like much, but as the authors point out, this is an insufficient count, since many relocations are not made public, especially those of less informative, often smaller companies. Just this month, real estate technology company HomeLight announced it would move its San Francisco headquarters to Scottsdale, Arizona, while financial services company Flexible Funding said it would move its headquarters to Fort Worth, Texas. In the first six months of the year, 74 companies moved their headquarters out of California, according to an August report by the Hoover Institution at Stanford University. Startup hotspot San Francisco ranked high on the list, second only to Los Angeles, with a total of 47 companies lost over that three-year period.
A record number of companies are leaving California to go to states with a better business climate, and a new report shows that Texas remains its No. SAN FRANCISCO (KRON) California-based companies are moving out of the state at an accelerated pace this year, according to a report by the Hoover Institution at Stanford University.