Dallas Fort Worth Urban Forum

Corporate Relocations/Expansions

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utgf
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Re: Corporate Relocations/Expansions

Postby utgf » 26 Nov 2019 19:59

Tnexster wrote:Charles Schwab’s move to DFW shakes up leaderboard in region already undergoing changes

One would think, after losing Toyota, McKesson and now Schwab that somebody would start scratching their head and at least wonder why this keeps happening.


Nothing to wonder about or scratch their head about. Reasons are clearly known and as long as California economy is thriving with homegrown companies, why would they change anything. The issues with cost of living and homelessness would be even worse without some of these jobs leaving or growing their employees elsewhere. As it is even with the moving of Schwab headquarters, they are still not reducing their workforce in SF. And there is no appetite for further sprawl, especially in Bay Area, even though it continues to sprawl to the south and east. And even the merger with TD Ameritrade came about as new homegrown companies such as RobinHood app are shaking up the market.

https://www.sfchronicle.com/business/article/Charles-Schwab-to-lose-SF-headquarters-in-26-14860683.php

San Francisco’s economy is still booming, despite corporate departures, with unemployment at 2% and near a record low. But the city has lost finance sector jobs as the tech economy has surged. The Bureau of Labor Statistics says the number of finance jobs fell from 45,716 in 2008 to 41,882 last year, as tech jobs more than quadrupled from 22,108 to 97,486 over that time frame.


In late 2016, Schwab renewed its 417,266-square-foot San Francisco headquarters lease at 211 Main St. near the Embarcadero for 10 years. Schwab rented out 315,000 square feet at nearby 215 Fremont St. to fitness wearables company Fitbit as Schwab downsized in the city. Google has since leased more of the building and plans to buy Fitbit.


California’s unemployment rate fell to 3.9% in October, a record low since at least the 1970s, according to state data.

willyk
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Re: Corporate Relocations/Expansions

Postby willyk » 26 Nov 2019 22:10

jetnd87 wrote:Interesting that they're moving from urban-style HQ to Westlake. You think they'd save enough dollars by going from SF and could afford / want to move into Dallas urban core. I guess they already had a facility out in Westlake though...


Read “proximity to DFW Airport:”

“Both companies have a sizable presence in the Dallas-Fort Worth area,” the release said. “This will allow the combined firm to take advantage of the central location of the new Schwab campus to serve as the hub of a network of Schwab branches and operations centers that span the entire U.S., and beyond.”

Tnexster
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Re: Corporate Relocations/Expansions

Postby Tnexster » 01 Dec 2019 13:34

Schwab is the latest company leaving California for Texas and it won’t be the last, expert says

https://www.dallasnews.com/business/201 ... pert-says/

The Dallas Morning News talked to corporate relocation site selection expert John Boyd about Schwab’s decision to make its campus under construction in Westlake the new headquarters, and why even more California companies are likely to pack up and move to the Lone Star State in the future. One study estimates 13,000 companies fled the Golden State in a nine-year period from 2008 to 2016.

It’s been rumored for a long time that Schwab may be looking to get out of California. Why would the company choose to have this move coincide with a major acquisition like TD Ameritrade?


This is another motivating factor for Schwab to reduce operating costs. Operating costs in Dallas are significantly less versus San Francisco. The tax and regulatory climate in Dallas is much more business friendly versus San Francisco. This also puts a microscope on some of the qualitative issues facing the Bay Area. For example, out-of-control housing costs.

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tamtagon
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Re: Corporate Relocations/Expansions

Postby tamtagon » 01 Dec 2019 18:06

North Texas:Bay Area::Plano:Dallas

did i type that right?

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quixomniac
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Re: Corporate Relocations/Expansions

Postby quixomniac » 01 Dec 2019 20:04

I dont mean to rain down on anyone's parade here, it definitely is good news.
But are there any numbers on the expected jobs?
It all looks like blatant public political positioning.
They moved their HQ for tax purposes while majority of the jobs are staying in SF.
I mean we'll take what we can get.

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PonyUp13
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Re: Corporate Relocations/Expansions

Postby PonyUp13 » 02 Dec 2019 02:31

quixomniac wrote:I dont mean to rain down on anyone's parade here, it definitely is good news.
But are there any numbers on the expected jobs?
It all looks like blatant public political positioning.
They moved their HQ for tax purposes while majority of the jobs are staying in SF.
I mean we'll take what we can get.


I had understood they were already slowly moving their HQ to the Metroplex but hadn’t officially said it, so I didn’t see this as much as an incremental job thing as formalizing what many of us expected. I think they’re keeping a number of jobs in SF in the same way that relos tend to list the jobs they’ll still be supporting back in the “losing” market.

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Tucy
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Re: Corporate Relocations/Expansions

Postby Tucy » 02 Dec 2019 08:49

/\ I think that's right. I think the bulk of the job shift out of San Francisco has already occurred and has been underway for several years.

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Cord1936
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Re: Corporate Relocations/Expansions

Postby Cord1936 » 03 Dec 2019 11:38

Schwab CFO: Finances were not ‘big driver’ in decision to move HQ to North Texas
By Brian Womack – Staff Writer, Dallas Business Journal, Dec 2, 2019, 12:59pm EST

“I wouldn’t think of the eventual headquarters move to Texas as being a big driver from a financial standpoint,” Chief Financial Officer Peter Crawford said. “It’s really more a reflection of the reality today, which is that we have a large campus in the Westlake area. TD Ameritrade has a large campus in the Southlake area. We have opportunity for expansion there.”

He said the company will continue to have a large presence in San Francisco, consistent with where it’s at today.

Yet more folks should be coming to the North Texas locale in the future.

As we look over the next four or five-plus years, that is a location where we will be likely adding a significant number and certainly ... a more significant percentage of our staff,” Crawford said.

Article: https://www.bizjournals.com/dallas/news/2019/12/02/charles-schwab-hq-move.html?iana=hpmvp_dal_news_headline

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muncien
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Re: Corporate Relocations/Expansions

Postby muncien » 03 Dec 2019 12:45

I'm not sure I could trust my money to anybody who runs a significant amount of their operations out of a massively overpriced region... Kinda like the 'pastor' who wears bling and lives in a 6m sqft mansion while asking for donations. smh
"He doesn't know how to use the three seashells..."

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utgf
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Re: Corporate Relocations/Expansions

Postby utgf » 04 Dec 2019 23:55

Having grown up in Dallas and now being in SF and still following this forum, this is almost like reaction of Blockbuster's move to Dallas unaware about the disruption about to happen with NetFlix.

https://www.google.com/amp/s/www.forbes.com/sites/donnafuscaldo/2019/12/04/mobile-trading-app-robinhood-now-has-more-than-10-million-accounts/amp/

https://www.irishtimes.com/business/technology/stripe-joins-fintech-focus-on-new-york-instead-of-san-francisco-1.4103308?mode=amp

There is a reason why Schwab would keep a large presence in bay area. And there is a reason why when Toyota moved its headquarters to Plano, it kept its design center in LA and at the same time invested one billion dollars in a new AI Robotics center in the bay area.

Tnexster
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Re: Corporate Relocations/Expansions

Postby Tnexster » 09 Dec 2019 08:46

Here’s why Charles Schwab and other finance companies keep coming to North Texas

https://www.dallasnews.com/business/com ... rth-texas/

That means fewer workers and offices — except in Westlake, where Schwab is building a major campus for 6,000 employees and has room to grow. Next door, in Southlake, Ameritrade has a sparkling regional office that opened in 2018.

“We have an opportunity for expansion there,” Peter Crawford, Schwab’s chief financial officer, told analysts on Nov. 25. “Over the next four, five-plus years, that is a location where we’ll be likely adding a significant number — and certainly even more significant percentage of our staff.”


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