Corporate headquarters relocations have significantly increased in 2024 after two years of slowing momentum, with 96 companies announcing plans to move their headquarters compared with 18 in 2023 and 63 in 2022. This is the second-highest number of relocation announcements in at least seven years, behind only 2021, when 137 companies announced plans to move their headquarters, according to a CBRE analysis.
The slowdown following 2021 was likely due to macroeconomic challenges and a growing emphasis on workplace optimization. The recent uptick mirrors residential migration trends and reflects a shift in business strategy as companies seek environments that align with their operational goals and workforce needs, said CBRE.
The most common reasons for relocating were the business climate and access to the consumer base, although tax incentives, lower taxes and proximity to key markets figured into the decision-making of nearly half of those planning to relocate, CBRE’s research revealed. Fifteen relocations were seeking lower costs or amenities that supported hybrid working, and seven relocations were tied to the consolidation of operations. Labor availability was cited in 14 relocation announcements, and lower-cost tech talent was cited in five.
In particular, manufacturing and technology companies are strategically relocating to access top talent, reduce operational costs and capitalize on emerging market opportunities. Technology companies are looking outside traditional tech hubs like Silicon Valley and Seattle, while manufacturing companies are seeking geographic diversity, supply chain optimization and strategic positioning in regions with competitive advantages, according to CBRE.
Many companies are choosing to exit California, with Texas, Tennessee, Arizona and Colorado receiving several of those relocations. Texas was the top pick for relocations, with 26 of the 97 of them announced in 2024 in the state. They mostly occurred in Dallas, Houston and Austin. Meanwhile, San Francisco has lost 156 corporate headquarters since 2018 and Los Angeles has lost 106.
“It’s important to pay attention to the competitive labor environment in states like Texas that have had a rapid increase in new HQs,” said CBRE. “As new corporate HQs emerge, the demand for skilled workers often rises, potentially surpassing the local labor supply. This situation fosters a competitive hiring landscape where companies must offer attractive compensation, benefits and workplace culture to entice and retain talent.”
Notably, more than one-quarter of relocations last year were made by international companies that were establishing or relocating their headquarters in the United States. Companies from Switzerland, Germany, Britain, Australia and South Korea are among those moving their headquarters to the U.S., highlighting the country’s strategic appeal to global firms, said CBRE.
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