US Freedom Capital Blog

Relocating companies want 'business-friendly' states, but what does that mean?

Posted by USFC Team on Dec 18, 2018 5:31:40 AM

Texas typically ranks highly in listings of the best states for business. But what factors play into a business-friendly climate, and what states offer the most competition for Texas in the battle for corporate expansions and headquarters relocations?

Site selectors weighed in on that topic among the many discussed at the Dallas Business Journal’s NTX HQ Corporate Relocation Summit held Nov. 5 in Irving.

Brian Corde, co-founder and managing partner of New Jersey-based site selection firm Atlas Insight LLC, said many companies zoom in on right-to-work states and also focus on the ease in which they can get things such as permitting through the government.

“Regulatory environment, setting up a good quality of place, good educational environment, places where people can graduate and then walk back to and live — I think those are the things that keep Texas strong in those rankings,” Corde said.

State and local governments will go to great lengths to cut through red tape for companies.

For example, in an incentive package for Amazon’s HQ2 project, the city of Dallas offered to create a concierge municipal department called the “Amazon Go Team” to expedite and prioritize all things Amazon.

“The 'Amazon Go Team' will be your friends at city hall, reachable by cell phone, obsessed with customer service, and ready to assist with any issue,” the city’s missive to Amazon said.  “A permit is being held up? Got a zoning issue? Need to know where to get the best barbecue in town? Call the Go Team.”

Seattle-based Amazon (Nasdaq: AMZN) initially said its HQ2 project would have 50,000 jobs and $5 billion in investment. The e-retail and tech giant ultimately split its HQ2 between New York City and the Washington, D.C. area.

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Topics: Texas, Dallas, Austin, D-FW, Business, economy, Business Friendly

$3B company relocating HQ from California to North Texas

Posted by USFC Team on Dec 17, 2018 5:22:47 AM

A global medical technologies company is relocating its corporate headquarters from California to North Texas.

The latest in a steady stream of moves from California to Texas, DJO plans to move its operations from San Diego to Lewisville within the first few months of 2019, according to a release.

The corporate office will be located at 2900 Lake Vista Drive.

The company provides products that assist in injury prevention, rehabilitation and more. DJO's product lines include orthopedic bracing, hot and cold therapy, therapeutic shoes and inserts and compression garments, among others.

DJO, which recorded $1.2 billion in sales in a recent 12-month period, said that the move will create hundreds of new job opportunities in the region. The company already employs 200 at a new distribution center in Fort Worth that opened a few months ago.

DJO President and Chief Executive Officer Brady Shirley said the company made the decision to move to the region due to its "strong and larger" talent pool, more efficient access to customers, and to take advantage of Texas' "better" corporate environment.

This relocation comes less than a month after the company announced it was changing ownership. On Nov. 19, Colfax Corporation (NYSE: CFX) said it had entered into an agreement to acquire DJO from Blackstone in a $3.15 billion all-cash deal.

The Maryland-based company, which specializes in technology that provides air and gas handling and fabrication products and services, said the move reflected Colfax's intent to diversify its portfolio at the time of the deal's announcement.

"We see significant opportunities to apply our proven Colfax Business System across DJO to create a continuous improvement culture, further improve productivity and margins, and accelerate innovation and new product development," said Matt Trerotola, president and CEO of Colfax, in the release.

DJO's Bracing and Supports and Consumer units will remain in San Diego. It had EBITDA of $269 million for the twelve-month period ending September 2018. 

DJO is following a Fortune 500 health care giant into Texas.

Two weeks ago, McKesson Corp. (NYSE: MCK) announced plans to move its global headquarters from San Francisco to Las Colinas.

"Making this move will improve efficiency, collaboration and cost-competitiveness, while providing an exceptional work environment for our employees," John H. Hammergren, McKesson’s chairman and CEO, said in a prepared statement.

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Topics: Texas, Dallas, jobs, Employment, economy, Growth

Dallas-Fort Worth economy remains strong & continues to grow!

Posted by USFC Team on Jul 31, 2018 1:32:01 AM

The Dallas–Fort Worth economy continues to expand. The June jobs report indicated employment growth moderated, with DFW adding jobs at the slowest pace so far this year. Overall, the DFW economy remains strong, with 3.2 percent annualized job growth year to date. The unemployment rate ticked up in Fort Worth but remained flat in Dallas. Business-cycle indexes for both metros pointed to continued expansion. Home sales growth has been essentially flat in the first half of 2018, and inventory has ticked up but remains tight.

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Topics: Dallas, Texas, economy, Employment

Dallas–Fort Worth economy expands at a torrid pace, 55000 new jobs added this year!

Posted by USFC Team on Jun 26, 2018 6:17:28 AM

The Dallas–Fort Worth economy continued to expand at a torrid pace. The May jobs report showed the metro area growing at a 3.7 percent annualized rate in the first five months of the year, adding a total of 55,500 net new jobs. The unemployment rate remained near record lows, and the Dallas and Fort Worth business-cycle indexes posted above-trend growth. Home-price appreciation moderated in Dallas in the first quarter but stayed strong in Fort Worth. Housing affordability improved slightly in the first quarter but was lower in Dallas relative to other major Texas metros as well as the U.S.

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Topics: Dallas, Texas, economy, jobs, Employment, housing, real estate

Dallas office space demand among strongest in the USA

Posted by USFC Team on Mar 19, 2018 8:00:00 AM

Long a magnet for corporate relocations and expansions, Dallas-Fort Worth ranks among the top 10 metros nationwide with a strong demand for pre-leasing office space.

According to a March 14 report by CBRE Group, about 1.1 million square feet of roughly 3.75 million square feet of local office space expected to deliver between 2018 and 2022 has been pre-leased. That represents a pre-lease rate of 41 percent.

Robert Kramp, director of research and analysis with CBRE, says the figures show the region not only has a robust construction pipeline, but tenants are quickly snapping up space as it becomes available.

Demand for Dallas-Fort Worth office space stems from a couple of factors. One is the ease of securing real estate in the area.

"One of the reasons DFW has been a magnet for corporate relocations and expansions is the supply of Class A office space and companies can discretely negotiate terms moving into office space, versus getting into a bidding war," Kramp added.

And with a low unemployment and a demand for talent, companies are moving to and expanding in offices that offer amenities they think will be attractive to existing workers and new hires.

"Building owners are adding additional amenities like tenant lounges, WiFi connections throughout and fitness centers so that the average employee can stay at the building longer and be more efficient," said Shannon Brown, first vice president at CBRE.

With that in mind, neither Kramp nor Brown sees DFW's office space being overbuilt in the near future.

Austin, the other Texas city included in the report, has a pre-leasing rate of 53 percent for about 3 million square feet.

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Topics: Texas, office, economy

Dallas-Fort Worth Leads the U.S. in Job growth

Posted by David Gunderson on Jan 12, 2018 1:16:41 PM
Dallas Federal Reserve Bank says Texas should add 366,000 in 2018 if oil prices hold up
Dallas-Fort Worth’s job base grew the fastest among the nation’s dozen biggest metro areas last year, the Bureau of Labor Statistics reported Thursday. For the year ending with November, the D-FW metro area added 100,400 jobs — a 2.8 percent increase. That was the largest increase by both percentage and sheer number. Employment grew 2.2 percent in Boston and Phoenix and 2.1 percent in Atlanta during the same period.

Much of D-FW’s growth was in professional and business services, which added 31,100 positions. That’s no surprise as regional leaders work to recruit corporate headquarters that employ thousands of highly paid workers in sprawling new developments anchored by offices.

In particular, financial services companies have expanded their head counts in areas where living costs are cheaper than in the coastal cities where those firms often have their headquarters. Charles Schwab, for instance, is expected to have 2,600 workers at its campus in Westlake that’s under construction.

According to a Bureau of Labor Statistics news release, leisure and hospitality added the second-most jobs in D-FW during that year, 18,100 — a sign that the restaurants and bars that serve all those new office workers are expanding quickly to keep up.

Now, economists say, the biggest challenge in many fast-growing cities is to find enough workers to fill those jobs as baby boomers age out of the workforce and immigration slows. At the national and state levels, unemployment has been at record lows.

Still, the Federal Reserve Bank of Dallas predicted that Texas, whose growth has has been powered in large part by D-FW in recent years, will continue to add jobs at top speed in 2018.

As long as oil prices stay above $40 per barrel, a Dallas Fed economist said, the state is likely to expand employment 3 percent this year, adding about 366,000 jobs.

Elsewhere, health services was a major source of job gains. The category added the most jobs of any industry sector in eight metro areas, including Boston, Los Angeles, Miami and New York.
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Topics: federal reserve, economy, Dallas, Oil

Texas’ economic outlook bright, nation’s forecast less so, Dallas Fed chief says

Posted by USFC Team on Aug 20, 2017 7:07:49 PM

Federal Reserve Bank of Dallas President and CEO Robert Kaplan says Texas will be fine. It’s the rest of the country he’s worried about.

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Topics: economy, Texas

How Trump Affects Commercial Real Estate

Posted by USFC Team on Feb 23, 2017 8:00:00 AM

Even before he was sworn into office, President Donald Trump's planned to expand the economy by increasing job growth in a tight labor market, cutting corporate taxes, pulling back on financial regulations and raising infrastructure spending had garnered support from the business community.

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Topics: USA, economy, Trump

DBJ: Dallas-Fort Worth property values up 11% to $456.9B — or about Poland's GDP

Posted by USFC Team on Jan 4, 2017 7:48:00 AM

Dallas-Fort Worth — one of the most powerful housing metros in the United States — has seen a gain in housing values of 11.1 percent or $45.7 billion through the end of 2016, with all homes in the region totaling $456.9 billion.

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Topics: Dallas, real estate, economy

Wells Fargo economist: ​‘No apparent let-up’ for Dallas hiring

Posted by USFC Team on Dec 19, 2016 8:31:54 AM

The Texas economy added more than 20,000 jobs in November, according to government data released Friday, as the Dallas area continues to drive new hirings in the state.

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Topics: jobs, Dallas, economy

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