Corporate HQ relocations soar across U.S. in 2024: CBRE report
TEXAS, UNITED STATES — An increasing number of major companies are relocating their corporate headquarters, turning a once-rare event into a growing trend.
According to CBRE, a real estate advisory group, 96 firms shifted their headquarters either to or within the United States last year, from just 18 in 2023. The new data sits 20% above the seven-year average.
The momentum looks set to continue. A recent survey by Knight Frank revealed that 40% of 300 corporate real estate leaders believe a headquarters move is “fairly likely,” “very likely,” or certain within the next three years.
“Location strategy is an important thing to get right,” said Ken Raisbeck, head of consulting at CBRE. “Getting it wrong can take a long time to unwind.”
Incentives and practicalities drive relocations
The motivations behind these moves are varied but often include tax breaks, favorable regulations, and incentive packages, especially when shifting to a new city or country.
Texas, for example, has emerged as a popular destination for U.S. companies seeking a more business-friendly climate. High-profile firms like Caterpillar, Tesla, and Charles Schwab have all relocated to the state in recent years.
Many companies from outside the U.S. are also making the jump, with 25 such moves last year, according to CBRE. In some cases, the quest for stock market recognition drives the decision.
Construction supplier CRH and betting group Flutter recently moved their primary stock listings to the U.S., with Flutter relocating its headquarters as well. When Ashtead Group shifts its listing from the United Kingdom to the U.S. next year, its HQ will follow suit.
However, experts advise against relocating headquarters solely due to tax or regulatory benefits, as shifts in jurisdictions or political climates can quickly reverse these advantages. “The maelstrom over tariffs shows just how quickly the sands can shift,” warns Oliver Ralph of Financial Times.
Workforce and market proximity take priority
Companies weighing relocation are increasingly considering proximity to their workforce and customers. Microsoft famously moved from Albuquerque to the Seattle area in 1979 to tap into a deeper pool of programming talent, a move that has served it well for decades.
Chevron’s move from California to Houston was influenced by the presence of the majority of its employees in Houston.
Similarly, Prudential has shifted most of its head office functions from London to Hong Kong to align with its growing Asian business.
Oracle’s evolving strategy reflects these shifting trends. After moving from California to Texas in 2020, founder Larry Ellison announced last year a future relocation to Nashville, citing the city’s healthcare industry strength. This follows Oracle’s $28 billion acquisition of health IT firm Cerner in 2022.
These moves underscore a growing realization among corporations: while tax breaks and incentives matter, long-term success is increasingly tied to being close to the talent and markets that drive growth.
