Texas claims California business headquarters more than four times the rate of its nearest competitor, according to a study released Tuesday by McKinney-based Spectrum Location Solutions and Stanford University’s Hoover Institution.
Lone Star State won 114 corporate transfers to California from January 1, 2018 to June 30 of this year, 89 more than Tennessee, which secured the second most wins in that period.
Forty-one of these companies planted corporate flags in North Texas. The Austin area got 57, Houston got nine and the San Antonio area attracted six.
The study’s authors, Joseph Vranich and Lee Ohanian, cited high taxes, harsh regulatory policies, and rising energy and utility costs as factors contributing to the California exodus.
“Moving a business to Texas, there’s a sense of calm and certainty,” said Vranich, a critic of the California business environment who moved his own business out of state in 2018. “The regulations themselves “But they have some stability when it comes to knowing what they are, how much they can change. That stability is evident in Texas.”
North Texas has welcomed dozens of high-profile companies from major West Coast metropolitan areas in recent years, including engineering giant AECOM, which announced its relocation of its Los Angeles headquarters. in Dallas last week.
Other recent moves from California to Dallas include military graduation eyewear maker Wiley X, financial services firm First Foundation Inc. and MD7 Mobile Infrastructure Consultant LLC.
The COVID-19 pandemic provided an ideal exit opportunity for companies that wanted to get out of expensive cities like Los Angeles, San Francisco and New York. Last year there were about 70 announcements of relocation and expansion in the D-FW area, according to data from the Dallas Regional Chamber. So far this year there have been 50.
This trend shows no signs of slowing down. During the first six months of 2021, the number of relocations from headquarters to California was double that of previous years.
According to the Spectrum study, high energy prices proved important for companies. Although Texas ranks half of the package in 29th place in terms of commercial energy prices, it far exceeds California, which ranks 48th. The average price of commercial energy in California was 17 , $ 20 per kilowatt-hour in March, compared to the average Texas price of $ 10.41.
“For certain types of installations, it will probably cut the electricity bill in half,” Vranich said.