Houston’s Appeal For Corporate Relocators

In late January 2022, energy giant ExxonMobil announced it would relocate its corporate headquarters from suburban Dallas to its existing 385-acre campus in Spring, Texas-based City Place. The campus, which opened in 2014 (and formerly dubbed Springwoods Village), currently houses ExxonMobil’s Upstream, Downstream and XTO Energy companies. It’s also just minutes away from Conroe, home to ARTAVIA.

According to the company’s press release, the move will merge “Chemical and Downstream businesses” while centralizing “Technology and Engineering and key service organizations.”

ExxonMobil is not the only Fortune 500 company making tracks to the north Houston area. Hewlett Packard Enterprise (HPE) announced in 2020 it would boost its already strong Texas presence by relocating its San Jose, CA headquarters to City Place. The 440,000-square-foot campus is scheduled for a 2022 opening.

Here are a few reasons why the Houston-The Woodlands-Sugar Land Metropolitan Statistical Area (MSA) is a popular target for such moves.

Low Taxes/Cost of Business

Texas overall has a combined corporate tax rate of 21%, among the lowest in the United States. Furthermore, Houston’s overall tax structure and business-friendly policies mean a lower cost of doing business.

Additionally, Houston ranked among the top 20 in Arizona State University’s “Doing Business North America” report. The report cited Houston’s ability to employ workers, land and space use and insolvency resolution as among the reasons for this ranking.

Convenient, Central Location

The metro is close to the center of the United States, which means a savings of both time and money when it comes to travel. Quality infrastructure includes up-to-date roads, as well as access to two international airports, with George Bush Intercontinental Airport the closest to Spring and Conroe.

Low Corporate Rent

According to CBRE’s Q4 2021 U.S. Office Report, Houston asking rents were $31.45 per square foot. This was below the per-square-foot asking rent for Boston ($42,24), Chicago ($35.82), Los Angeles ($46.79), Manhattan ($76.45), San Francisco ($79.57) and Washington, DC ($41.66). Houston maintained its lower rate, despite a 6% year-over-year rent growth increase.

High Housing Affordability

According to Redfin, the median sales price for homes in the Houston metro was $309,000; the average home sales price in Conroe was $307,338. The U.S. average home sales price stood at $382,813. Housing prices are far less in Houston than on either coast.

If you’re thinking about relocating your home, ARTAVIA has a variety of floorplans and styles to fit your lifestyle and needs. For more information, visit artaviatx.com.

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