North Texas among the regions benefitting from 'Bay Area exodus'

Every week brings news of yet another Bay Area company that plans to move its headquarters out of the region — essentially saying enough is enough.

The region faces quality of life issues, escalating housing costs, growing traffic congestion and higher taxes that are likely to only get worse as President Trump’s tax overhaul means many of the Bay Area’s most successful residents will be paying more to the IRS.

The list of companies expanding elsewhere, or actually moving their Bay Area headquarters out of state, reads like a growing casualty count as the region’s business and civic leaders grapple with these quality-of-life issues. Depomed, Bare Escentuals, Jamba Juice, Krave Jerky and Bechtel are all relocating their headquarters, while Charles Schwab Corp. (NYSE: SCHW), Lyft, New Relic (NYSE: NEWR) and Slack, just to name a few, are expanding beyond the Bay.

The rising costs of doing business in the Bay Area are also raising concerns among entrepreneurs and venture capitalists that the region’s reputation for risk-taking on promising startups could suffer.

Back in Texas, the Dallas Business Journal is hosting a seminar next month for those wanting to join the 75 companies from around the country that have moved their headquarters to Dallas-Fort Worth in the last seven years.

“Nearly as many regional offices have done the same,” the newspaper says in asking, “Ready to relocate?”

One recent victory for North Texas was San Francisco-based Core-Mark Holding Co. Inc.(NASDAQ: CORE), a Fortune 500 company moving its headquarters to Westlake in 2019.

Core-Mark President and CEO Scott McPherson said the central location, favorable operating costs and lower taxes in the region were big draws.

“It’s getting us in a much better position as a nationwide company to service our customers to be in a market that is, I’d say, employee friendly with a really high quality of life,” McPherson said.