The Great Corporate Migration: America's Fastest Growing and Declining HQ Markets (2018–2024)

In the business world, location has always mattered — not just for retail visibility but for strategic survival. Over the past six years, the American corporate map has undergone a seismic shift. Companies are leaving high-cost, high-regulation coastal cities and planting their flags in inland hubs — with Texas emerging as the biggest winner.

This trend is more than just a geographic reshuffle. It signals deeper changes in the way companies evaluate growth, regulation, cost, and talent — all of which offer valuable insights for UK-based investors, entrepreneurs, and analysts.

The Numbers Tell a Clear Story

According to data compiled by CBRE and visualised by Visual Capitalist, the fastest-growing U.S. headquarters markets between 2018 and 2024 are dominated by cities in Texas and the Sun Belt.

Top 5 Cities for New HQs (2018–2024)

1. Dallas, TX – +100 new HQs

2. Austin, TX – +81

3. Nashville, TN – +35

4. Phoenix, AZ – +31

5. Houston, TX – +31

That’s three out of the top five in Texas alone — thanks to its absence of corporate income tax, lower operational costs, and a consistently pro-business environment.

Cities with the Biggest Decline in HQs

1. San Francisco Bay Area – -156 HQs

2. Greater Los Angeles – -106

3. New York City – -27

4. Chicago – -15

5. San Diego – -14

The San Francisco Bay Area stands out as the most significant loser, shedding more than 150 headquarters, including major names like Chevron and Oracle.

Why Are Companies Moving?

1. Tax Incentives

Texas offers zero corporate or personal income tax, compared to California’s 8.84% corporate tax and New York’s similarly high rates. This can translate to millions in annual savings for large firms.

2. Lower Costs Across the Board

Cheaper office space, housing, labour, and utilities make running a business in Dallas or Austin far more affordable than in San Francisco or New York.

3. Remote Work Flexibility

The pandemic shattered the myth that innovation requires a single physical location. Companies like Tesla, Oracle, and Chevron relocated HQs to Texas when remote work became the norm.

4. Access to Talent and Infrastructure

Texas cities are investing heavily in infrastructure and education. Austin and Dallas are emerging tech hubs with vibrant startup scenes and access to top university graduates.

5. Quality of Life

Executives and employees alike are prioritising affordability, lifestyle, and shorter commutes. It’s hard for coastal cities to compete on this front.

For UK Investors: Lessons from the American Corporate Shift

This isn’t just a U.S. phenomenon — it’s part of a global decentralisation trend that smart investors should be paying attention to. Here’s what it means for British investors and businesses:

✅ Invest in Regions, Not Just Companies

More than ever, where a company operates can be just as important as what it does. Texas-based firms may benefit from friendlier tax regimes and long-term growth momentum. Look at REITs focused on the Sun Belt, or ETFs capturing this regional economic shift.

✅ Tech’s Centre of Gravity Is Moving

While Silicon Valley remains a powerful brand, real innovation is growing elsewhere. Austin, Dallas, Phoenix, and Nashville are now serious contenders for venture capital, AI talent, and R&D.

✅ Real Estate Outlook Is Shifting

With commercial vacancies rising in cities like San Francisco and New York, investors are turning to industrial parks, suburban HQs, and data centres in lower-cost cities. This could be a smart play for those in commercial real estate funds or REITs.

✅ ESG and Governance Considerations

Relocations also highlight differences in local regulations, energy policies, and governance. As ESG investing becomes more important, these shifts are worth factoring into long-term strategies.

Will the Trend Continue?

Some argue this shift is temporary — triggered by COVID and cost-cutting. But long-term feedback loops suggest otherwise. As capital, talent, and infrastructure accumulate in new hubs, it creates a flywheel effect. States like Texas have doubled down on business-friendly policies, ensuring the momentum continues.

Looking ahead, expect to see:

• Further decentralisation of corporate HQs

• Growth in second-tier cities like Raleigh, Charlotte, Salt Lake City, and Tampa

• Fierce competition between U.S. states offering incentives and lifestyle perks to lure talent and capital

A Decentralised Future

For UK investors watching from afar, this trend is a powerful reminder that the U.S. economy is not monolithic. Just as Britain is more than just London, the future of American business will not be confined to Manhattan or Silicon Valley.

Instead, the next wave of corporate success stories may be born in Dallas, built in Austin, or funded in Phoenix. And for those paying close attention, that means new investment opportunities — and fewer surprises.

Sources:

• CBRE U.S. Headquarters Market Trends (2018–2024): CBRE Research

• Visual Capitalist Infographic: Visual Capitalist – Fastest Growing U.S. HQ Markets

• U.S. State Business Tax Climate Index: Tax Foundation

• Commercial Real Estate Trends in Texas: JLL Research

• Tesla HQ Move Confirmation: CNBC

• Tech Job Growth Rankings: CompTIA Tech Cities 2023

• U.S. Office Outlook: CBRE Future Office Trends

• Sun Belt REIT Performance: Nareit

Alpesh Patel OBE

www.campaignforamillion.com 

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