The Effect of Corporate Relocation Incentives on the Office Market
Sunday, April 18, 2021
The pandemic has left office markets across the country with more vacancies than they have seen in over a decade. With practically every occupier rethinking its real estate footprint, filling all that empty space will be a challenge. It isn’t just office landlords who are fighting for tenants in this softening market, cities are also competing to bring in workers. This will likely accelerate an already growing trend of cities offering incentives for corporate relocations and will have an impact on which office markets will recover the fastest from the reduced demand.
Dallas has been the poster child for relocations since forming The North Texas Commission in the late 1970s, landing a 1,300 employee corporate relocation when American Airlines moved to Dallas from New York. Since then, the 11-county Commission has become a powerhouse. The headquarters of more than twenty Fortune 500 companies are in the Dallas-Fort Worth metroplex, giving it one of the largest corporate HQ concentrations in the country.