Dallas a Leading Market For Corporate Headquarters
Texas is known for drawing in new companies because of its business-friendly laws. But Dallas wins the medal for attracting top corporations from around the world like a magnet. Since 2012, over 75 companies have moved their operational hubs to the Dallas-Fort Worth region from both the U.S. and abroad.
The tens of thousands of Dallas area jobs created by this influx of businesses positively impacts the residential rental real estate market. As more transferred and new hire employees flood the DFW market, the demand for rentals increases, driving up the rental market.
New companies moving into the Dallas market also drive up demand for commercial space. From office parks to entire office buildings to commercial land on which to build, corporate newcomers to the DFW area are eager to establish a solid foothold with a brick and mortar presence. This presents opportunities for commercial real estate investors interested in leasing, building and/or private lending.
Following are three of the many impressive corporations and organizations that have recently moved headquarters to DFW or are planning to do so, along with estimated job creation and financial impact figures:
Public company Core-Mark Holding Co., Inc. (NASDAQ: CORE) provides fresh and frozen merchandise and tobacco products to convenience stores such as 7-Eleven. Core-Mark is a Fortune 500 company and is the second largest convenience store distributor in the U.S.. Previous headquarters were in San Francisco; moving to Westlake area of Dallas in early 2019. CEO Scott McPherson says, “Dallas offers more favorable operating costs, lower taxes and a central location for Core-Mark’s nationwide business.” The company employs over 9000 people, country-wide. Core-Mark has advertised for over 150 jobs for its new Westlake location, including jobs in finance, human resources, IT and purchasing.
Public company McKesson Corporation (NASDAQ: MCK) provides pharmaceuticals and medical supplies to hospitals, pharmacies, and clinics around the world. Annual revenue in 2018 reached $208 billion. It ranks number six on the Fortune 500 list. In November of 2018, McKesson announced plans to move its headquarters from San Francisco to Irving/Las Colinas. “We are excited to strengthen our presence in Texas and make Las Colinas our official global headquarters,” said John H. Hammergren, chairman and CEO. “Governor Abbott and the Irving/Las Colinas community have provided tremendous support since we opened our Las Colinas campus last April. Making this move will improve efficiency, collaboration, and cost-competitiveness while providing an exceptional work environment for our employees.” The company employs more than 75,000 employees worldwide. Recent McKesson job postings in the DFW area number nearly 180, with positions in IT, Six Sigma, human resources, finance, marketing, admin and more.
PGA of America (Professional Golfers’ Association of America) is the largest sports organization in the world. It has almost 29,000 members and hosts the Ryder Cup, PGA Championship, Women’s PGA Championship as well as numerous other golf championships. In early December of 2018, PGA announced plans to move its headquarters from Palm Beach Gardens, Florida to Frisco, Texas, part of the DFW region. Officially, the move will take place in 2020, but space has already been chosen on a 600-acre complex in Frisco where a luxury hotel and convention center and supporting infrastructure and facilities will also be constructed. The new headquarters will employ at least 100 people and is already set to host two of the most famous PGA Championships, a Ryder Cup and two KPMG Women’s PGA Championships. PGA is also teaming up in a joint venture with Omni Hotels & Resorts, the City of Frisco and the Frisco Independent School District for a weekly golf program. Says Seth Waugh, CEO, “Everything great starts with a dream. This is the beginning of a bold, new journey as we bring together world-class partners in a world-class location – to deliver innovative and differentiated experiences for our nearly 29,000 PGA Golf Professionals, golfers of all abilities and our staff.” Estimates on the economic impact of this historical move are $2.5 billion for North Texas over a 20-year span.
What’s exciting about this kind of growth in the Dallas area is the prestige of the companies and the quality and diversity of the job creation. Currently, 22 Fortune 500 companies are headquartered in DFW. The jobs these companies provide to current, transferred and new employees are of high quality, offering stable and lucrative employment to residents of DFW. These companies support and bolster the local residential real estate market and inject even more diversity into our already strong economy. As more companies see the tremendous value in all that Dallas offers to businesses, it’s likely that this growth will continue into the next decade.
If you’re interested in getting into residential single-home rentals in DFW or you’d like more information about commercial real estate investment opportunities, please contact American Real Estate Investments today.