Headquarters Relocation Projects Face Complex Site Selection Process
by King White, on Mar 17, 2022 11:14:38 AM
There were plenty of headquarter site selection projects in 2021—both for expansions and relocations. A key trend was companies relocating from high-cost locations, such as California or the Northeast, to more attractive states, such as Texas, Utah, North Carolina, or Tennessee.
Making a headquarters location decision requires a comprehensive analysis of a complex mix of site selection factors, including labor availability, labor costs, business climate, quality of life, accessibility, and real estate.
Usually, the top factor in choosing a headquarters location is the availability of talent and the ability to recruit in a location that has an attractive quality of life and reasonable cost of living. Headquarter relocations are often highly complicated and expensive due to relocation expenses and severance packages. Calculating the return on investment can be difficult as a result.
Below are some of the larger headquarters relocation and expansion projects announced in 2021.
Headquarters Relocation Projects
- Smith and Wesson, Maryville, Tenn.—$125 million capital investment to relocate its headquarters from Springfield, Mass. to Maryville (750 new jobs)
- Nymbus, Jacksonville, Fla.—$6.4 million capital investment to relocate its headquarters from Miami Beach to a new facility in Jacksonville (673 jobs)
- Credit Karma, Charlotte, N.C.—$13 million capital investment to establish a new “East Coast” headquarters at its existing facility in Charlotte (600 jobs)
- Dun and Bradstreet, Jacksonville, Fla.—$75 million capital investment to relocate its headquarters from Short Hills, N.J. to a new facility in Jacksonville (500 jobs)
- Innovation Associates, Indianapolis, Ind.—$18 million capital investment to establish its global headquarters in Indianapolis (420 jobs)
Headquarters Expansion Projects
- Malouf, Logan, Utah—$450 million capital investment to expand its existing headquarters facility in Logan (4200 jobs over 20 years)
- Lumio, Salt Lake City, Utah—$120 million capital investment to move its headquarters to a new site in Salt Lake City (3697 jobs over 20 years)
- LiveView Technologies, Orem, Utah—$328 million capital investment to expand its headquarters operations in Orem (3400 jobs over 10 years)
- Route App, LeHi Utah—$17.3 million capital investment to expand its headquarters operations in Lehi (3353 jobs over 11 years)
- Shop LC, Cedar Park, Tex.—$50 million capital investment to move its headquarters to a new facility in Cedar Park (1000 jobs by 2024)
- Exact Sciences, Madison, Wis.—$350 million capital investment to add a research and development facility at its existing headquarters in Madison (1300 jobs by 2025)
2022 and Beyond
Headquarters announcements are continuing in 2022. For example, JanLife Technologies, a biotechnology company, will spend $100 million to relocate its headquarters from Waltham, Mass. to a new facility in Lebanon, Tenn., creating 1400 new jobs.
Choosing the right location for your company’s headquarters is crucial to the long-term success of your business. Critical needs include the ability to retain and recruit top talent and the long-term support of local and state governments. Economic incentives and cost of real estate are other factors that can be expertly negotiated using an experienced site selection firm.