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Wednesday, May 07, 2014
Real estate brokers buzz about possible office move by San Francisco-based Charles Schwab
Charles Schwab Corp has almost 3,000 workers in the San Francisco area. (Bloomberg)
With Toyota Motor Corp.’s just-announced headquarters move to North Texas still making headlines, local real estate execs are already talking about another large potential move from California.
Financial services giant Charles Schwab Corp. has made it no secret that it might shift thousands of jobs from its San Francisco home base.
Company officials have said Texas is on their list of potential facilities location sites.
Late last year, the company told its more than 2,700 employees in the San Francisco Bay area that they might be transferred to less expensive operations in Denver or in Texas, The San Francisco Business Times has reported.
Schwab is already building a $230 million office campus in suburban Denver where it has consolidated 2,000 workers.
The company also has a large office center in suburban Austin which has been growing.
Dallas-area real estate developers, brokers and economic development officials say they’ve heard about Schwab scouting for office space options in North Texas.
A spokesman for the firm said Thursday that nothing is definite.
“We are keeping all of our options open, but I can’t talk about anything specific,” said Schwab’s Greg Gable.
Founded in 1973, the securities brokerage and financial services firm handles more than $2.3 trillion in clients’ assets and has 300 U.S. branches. One of its largest concentrations of offices is in Texas.
Last year Schwab reported more than $1 billion in annual profits.
Local real estate brokers say that Toyoto’s announcement this week that it will bring 4,000 jobs and its North American headquarters from Southern California to Plano will cause more major out-of-state investors to take a look at this market.
“In today’s business environment, corporate America is looking for every advantage they can get – specifically in their employment and real estate costs,” said Greg Biggs, managing director with commercial real estate firm JLL. “Coming off the heels of the announcement of Toyota, Dallas has national attention.
“I think this recent announcement is just the tip of the iceberg.”
Schwab officers in comments going back several years have grumbled about the high cost of doing business in California and the state’s high tax burdens.
Those are the same issues that have driven thousands of jobs from California to Texas and other markets, starting during the recession.
Texas – using millions of dollars in financial incentives to sweeten the deals – is also attracting a steady flow of workers from Illinois and New York.
“I think you will see more and more of this,” said Phil Puckett, executive vice president in the Dallas office of commercial real estate firm CBRE Group. “The dam is breaking up.”