TEXAS SCORES A HAUL - ORACLE, HEWLETT PACKARD ENTERPRISES,
CBRE, AND TESLA MOVE HQS TO TEXAS
Tech in Texas isn’t exactly new — steadfast companies like Motorola, Texas Instruments and IBM have had a presence here for some time.
But this year, the state scored a huge win as four giant companies decided to move their headquarters to Texas. Here’s the long and short of it:
Hewlett Packard Enterprise, which split from the main company in 2015, will relocate its headquarters to the Houston area in 2022, after its campus is complete.
Oracle began its plans to move to Austin in 2018, and recently announced that it has officially moved its headquarters to the Lone Star State. The company has 136,000 employees, and made the move after it completed its corporate campus.
Back in May, Tesla CEO Elon Musk tweeted that he will be moving the company’s headquarters to Texas or Nevada. More recently, Musk revealed that he had already moved to Texas and is working on rapidly relocating Tesla operations to outside Austin, creating a gigafactory in the area.
Real estate giant CBRE also announced an official move to Texas, though the majority of the company’s workforce (and leadership) was already located in the state. CBRE has been making a slow transition since at least 2006, but rumored to be the main tenant in a new office highrise.
DIG INTO THE NUMBERS
“The relocation of corporate headquarters, company founders and big-name VC investors points to a corporate diaspora of the tech industry — and what some have called a ‘tech exodus’ from the Bay Area” writes Clare Duffy on CNN.
Texas is on the receiving end of the exodus, and ready to give these companies a warm welcome.
TECH AND REAL ESTATE IN TEXAS
What does all this mean for real estate in these areas?
Oracle, Hewlett Packard Enterprise, and CBRE all have large office presences where they are relocating their HQs:
Oracle completed their new campus in 2018 and expanded it in 2019 before the announcement came in December 2020 — that’s a 2 year timeframe, for those keeping track.
HPE started construction on their new campus in Spring, Texas in February 2020 with a Spring 2022 completion date. They announced their HQ move once their buildings were topped off at the new campus.
CBRE announced their HQ move in October 2020. Rumors are they will move into Trammel Crow’s proposed 2401 McKinney (to start in 2021 and finish in 2023). This project was announced in 2020, and CBRE had nothing to do with it at the time). The company may consolidate some or all of their offices in this new building.
Tesla has its fifth Gigafactory in Austin. The project started construction in Summer 2020 and plans to be operational at the end of 2021.
CHECK OUT THE TECH REAL ESTATE PROJECTS ON FUSEGIS
Source: Walter P Moore
“Situated just west of Pleasant Valley Road, the Waterfront office building is the first major office development on the Southeast Waterfront,” Oracle partner Walter P Moore states in their description of the campus. “This building transforms the area and helps it realize it’s full potential as a mixed-use urban core. It contains 5-levels of office and meeting space above one level of parking. An additional stand-alone 8-level parking garage is located adjacent to the building for use by its tenants and visitors.”
New oracle Austin location: 2300 Oracle Way, Austin, TX 78741
City of Austin Full Purpose Jurisdiction
Zoned “PUD-NP” or Planned Unit Development
In FEMA 500-Year Floodplain
Hewlett Packard Enterprise
Source: CityPlace at Springwoods Village
Hewlett Packard Enterprise has a new location at 10300 Energy Drive, Spring, TX.
They started campus construction in February 2020, with plans to be complete in Spring 2022.
They already had a location in the area, put the property up for sale after Hurricane Harvey in 2018.
“In January 2018, as HPE was still occupying the Compaq campus and searching for a site for its new Houston-area campus, the company retained JLL to market the former Compaq campus,” according to BizJournals. “At the time, HPE planned to lease back the facility should it be sold before the new campus is move-in ready.”
Old HPE Location (for sale)
Houston Limited Purpose Jurisdiction
Some property in the FEMA Floodplain
New HPE Houston Location: Southwest corner of E. Mossy Oaks Rd & Lake Plaza Dr.
Not in floodplain
Located just south of Exxon Mobile Corporate Campus
“Construction of the planned Tesla factory in southeastern Travis County has been proceeding so fast that watching it take shape is practically a spectator sport,” according to the Austin American-Statesman. “The company has said it will manufacture many of its electric vehicles at the factory, but it has filed for a permit from the state to produce batteries as well. That would make the facility among the first Tesla locations to have both full-scale battery and vehicle production.”
New Tesla Gigafactory Location: Texas 130 and Harold Green Road
Source: Skyscraper Center
CBRE has four offices in North Texas, including 2100 McKinney in downtown Dallas.
“It is not known what the headquarters move will mean for CBRE's local offices, but sources suggest one possible location for a consolidation could be a recently proposed office tower at 2401 McKinney Ave. in Uptown Dallas,” reports BizJournals. “Being developed by Trammell Crow, the 27-story tower will reportedly have 670,000 square feet of office space.”
Long story short: it’s going to be an exciting couple of years for Texas real estate!