The Good, the Bad, and the Downside of Relocating Your Business from California to Texas


Why are so many California companies relocating to Texas? Businesses are tired of the California bureaucracy, which slows them down at every step. They are tired of paying high housing costs, high tax rates, and strict regulations, when they don’t have to. They’re tired of all the red tape that gets in their way when they’re trying to do something as simple as obtaining a business license— because of these and many other reasons, relocating headquarters to Texas is a viable option for many California companies.

One of the reasons why so many California companies are relocating their headquarters to Texas is because of the economic stimulus package that our state government just passed. This package pumped hundreds of millions of dollars into the economy and caused businesses to start growing again. Not only did this stimulate the economy, but it also attracted new business owners who were then able to start growing their companies and hiring employees. With this package in place, businesses are getting the money they need to be successful right away. With more money and more companies starting up, the job market in Texas is truly booming.

Another reason why California companies are leaving California to move some of their operations to Texas is because of the state’s regulation and licensing requirements. As you may know, California is one of the more densely populated states in the United States, and because of this, California businesses must abide by many of the more stringent regulations put into place by the state. Many of these regulations, such as those related to pollution and many more, cause businesses to feel like moving out of California is a great idea. The combination of high regulation and strict licensing policies can make doing business in California very complicated, which is why many California companies are choosing to make their move to Texas.

5 Awesome Benefits that Companies Get when They Move Their Businesses’ Operations from The Golden State to The Lone Star State

Moving your business’ location is a big step when it comes to your company’s operations. However, if the positive outweighs the negative, the business will benefit further despite the huge changes you must adjust to. Below are the top 5 awesome benefits that companies can get when they move their operations from California to Texas.

  1. Huge talent pool. When you relocate a business to Texas, there is an opportunity to tap into a large base of talented professionals that have moved to Texas to seek new opportunities. Because of the growing number of people moving to Texas from California and other states, the competition for jobs in the new city is extremely high. This means that for companies who are relocating to Texas, the chance to bring on a new employee, especially in the Dallas, Arlington, and Fort Worth Metroplex, is exceptionally high. 
  1. Business expansion. In addition to being able to attract a large number of new employees, companies have the opportunity to grow and expand their businesses in Texas. Because of the great business climate in Texas, companies can do very well without spending a great deal of money in setting up their operations there. Because of this, many California companies are choosing to make their move to Texas rather than pay the high costs of establishing a huge operations center in the state.   
  1. Less strict regulations. Texas offers the nation a fantastic business climate with less restrictive laws. It totally makes sense for California companies to consider relocating their headquarters to Texas because they are not bound by strict standards. Also, Texas currently has a better economy that continues to grow compared to other states. 
  1. Better business climate. California companies choose to move their headquarters to Texas because the business climate is much more conducive to doing so. Because Texas has a booming economy, the state’s business sector benefits a great deal from the boom. This means that it makes sense for California companies to consider relocating their headquarters to Texas. For example, in Arlington, Texas, a business can lease office and warehouse space one block from the new Texas Rangers Globe Life Field and only 3 blocks from the Dallas Cowboys’ ATT Stadium. With the advent of the Arlington Entertainment District, which includes Texas Live! as well as the Choctaw Stadium, there are so many things to do.   
  1. Lower costs. Lastly, businesses can save money on labor, transportation costs, property taxes, and licensing fees that can eat into a company’s profit. Texas is a wonderful place for companies to move their operations to. Not only is the business climate ideal for California companies to move to, but because the business environment is so favorable in Texas, the cost of doing business in the Lone Star State is much less than it would be in other states. For example, leasing an office space in the Arlington Entertainment district or retail space in the Dallas Medical district can cost around $8 – $19 per SQ FT per year. Plus, when you compare the cost of living between the two states, everything in Texas seems to be on sale. 

3 Disadvantages of Relocating Your Business from California to Texas that you Should be Aware of Before Making a Decision to Move

While relocating a California company’s headquarters to Texas does offer wonderful advantages, there are also some disadvantages to the move. However, California companies must also realize that relocating their headquarters to Texas can have a number of drawbacks. 

  1. First, depending on the size of the business, one of the biggest disadvantages to relocating a California business to Texas is that relocating a California company’s headquarters to Texas requires a significant amount of money upfront. The amount of money that is required often pre-determined by the California company or the business that is relocating to Texas and it is a large part of the business’s capital.  
  1. Second, one such drawback is that relocating a California business to Texas requires companies to move their entire workforce and some of their critical technology infrastructure. Many companies that decide to move their headquarters to Texas may be forced to outsource certain aspects of their operations in order to become more efficient.  
  1. Finally, another disadvantage of relocating to Texas is the fact that many companies are required to hire new employees in the areas in which they are moving. This means that when California companies are relocating their headquarters to Texas, they are essentially hiring new people for those positions in the new location plus the business has to enter a new leasing agreement for an office or warehouse space to house the newly hired employees. 

Finding a new Office and Warehouse Space in Texas can be daunting. Where to locate your business is the most important decision. Utilizing LoopNet in conjunction with site visits will help you determine the best location for your new Office or Warehouse space.    

If you wish to lease office space in Texas, connect with an experienced broker such as David Lester, a local Dallas Fort Worth Commercial Real Estate broker, he is known for his 30 years of experience in the industry plus, he makes sure that he helps his clients anticipate long-term success. David and his company, Lester & Lester Realty Advisors, Inc., can significantly help save time and prevent mistakes when locating and negotiating office space for rent in Arlington, Texas. He also specializes in warehouse and office flex space in the Dallas Fort Worth Metroplex. For most businesses, it is important to locate your business in the correct location in order to hire new employees and find a location that the employees can easily commute to.  

Making a big decision such as moving your business’ headquarters requires time and research. You have to weigh whether the advantages of moving will benefit your company more than the downsides if in case you move. Costs, hiring, and business expansion are major factors that you have to determine before making a final decision. Huge tech companies from the Silicon Valley are the first ones who decided to move, are you going to follow into their footsteps?