Study finds that Texas is top state gaining business headquarters

AUSTIN, Texas — A study looking at headquarter relocations in the U.S. found that Texas was the number one state business headquarters moved to in the past five years, with Austin being the top city on the list. 

The study was done by CBRE, a global commercial real estate services and investment firm, to look at the trends in headquarter relocations and what the implications of those trends mean for businesses. It reviewed nearly 500 publicly announced relocations from 2018 to 2023. 

Some of the key findings of the study were that it was an active five years in relocations, with 2021 having the most relocations at 137, and the technology industry saw the most movement, with the manufacturing industry following close behind. 

It would then make sense why Austin came out on top because of its emergence as a tech hub, with the city being dubbed by some as the new Silicon Valley. 

“Austin has emerged as a global tech hub, offering cost and culture advantages,” the study said. “An HQ relocation from Silicon Valley to Austin typically saves 15% to 20% in tech employee wages. Austin also has a markedly lower cost of living than Silicon Valley (although not to the extent of other Texas cities).”

One of the major relocations the study discussed was Elon Musk’s decision to move his Tesla’s headquarters to Austin back in 2021.

In total, the study said Texas gained 209 business headquarters, with 66 of those moving to Austin, 32 to Dallas and 25 to Houston.

“Today, 55 of the Fortune 500 companies are headquartered in Texas, the most of any state,” the study said. “Major firms like Oracle, HPE and Charles Schwab moved there after the pandemic began.”

Outside of Texas, Nashville and Denver rounded out the top five cities, with 21 and 11 headquarters added, respectively.

The cities that lost the most headquarters included two California cities, San Francisco/San Jose at 79 and Los Angeles/Irvine at 50, and New York City, which lost 21 headquarters. 

The study found that the most common reason for businesses to move were tied to cutting costs, which made Texas a favorable place because of its lower taxes. Some other reasons the businesses mentioned included regulatory policies, crime, homelessness and other social factors.