Two Texas cities are among the best for establishing a business headquarters, according to a new survey released last week by the corporate real estate magazine Site Selection. In fact, one of those cities tops the list.
Dallas was ranked the No. 1 city for relocating a corporate business, per Site Selection's Site Selectors Survey. Not far behind was Austin, which ranked tied for sixth with Chicago. Houston? Not in the top 10. Meanwhile, Texas is no longer the state with the best business climate in the U.S., another finding of the Site Selectors Survey.
Each year for its survey, Site Selection asks questions to several dozen consultants who specialize in finding optimal operations locations for businesses. For example, Site Selection asked, "In your opinion, what are the three most important elements of a state business climate?" They answered that the state's workforce, tax policy, and cost of living are most important.
All the answers were tabulated, and they showed that Dallas, followed by Charlotte and Atlanta, were the best places to find a new home for corporate headquarters. They also showed that Texas had the fourth-best business climate nationwide. Last year Texas topped the list of states, but this year Georgia ranked first, followed by North and South Carolina. Tennessee tied with Texas in fourth. In other words, the South is hot.
"The findings of our fellow site selectors are very much in sync with our firm's positive view of the business climate of these five southern states," The Boyd Company principal John Boyd Jr., a site selector, told the magazine. "I did a survey of our files, both within Boyd Co. and our BizCosts.com unit, to see where our firm has been most active over the past three years. The five states cited in this year's annual Site Selectors Survey accounted for roughly 60 percent of all our state-specific client inquiries and related location research."
Georgia was so proud of its No. 1 ranking that Gov. Brian Kemp released a statement on the victory.
"Georgia's recognition as the No. 1 state for Best Business Climate by Site Selection is a testament to our partnership approach to job creation and economic growth," Kemp said. "Our world-class workforce, strategic investments in infrastructure, and business-friendly policies continue to attract companies from around the world and create opportunities for hardworking Georgians in every community."
But why did Texas fall to fourth? Site Selection Executive Vice President Ron Starner told the Dallas Business Journal that competition for top corporations is stiffer than ever.
"There's more competition now than we had yesterday and last year, and the year before that," Starner told Dallas Business Journal. "The message to anyone working in economic development in Texas right now is lace up your bootstraps because it's only going to get more competitive out there."
What state is the worst for your corporate headquarters? That's right: California. One site selector said the Golden State rated poorly for its high taxes, business regulations, and lack of affordable housing.