“Everything is bigger in Texas” as the saying goes. It appears this is also true when it comes to economic growth.
Plano, Texas will soon be home to 4,000 additional financial services employees as JPMorgan Chase expands its presence in North Texas. The company is spending over $100 million to construct a 12-story, 540,000 square foot office tower on its Legacy West campus. The project is expected to be completed by 2021 but the transition began in 2016 when the city of Plano gave JPMorgan Chase a $4.9 million economic grant as an incentive for the initial expansion.
The building will house new and relocated employees as the banking giant begins shifting roles from New York to Plano. This move by the financial giant continues the trend of both companies and residents leaving the New York area. For JPMorgan Chase, the move equates to a more affordable business climate and a substantially lower cost of living for its relocated employees.
Dallas Business Journal reports that the Plano hub will allow the company to operate with a “critical mass of employees” in a workplace that fosters innovative collaboration. Although the Plano site will house JPMorgan’s largest employee base in Texas, the company also maintains operations in Fort Worth and Dallas.
Plano, which is the fourth-largest city in the Dallas-Fort Worth metroplex, is home to six Fortune 1000 headquarters: Keurig Dr. Pepper, Rent-A-Center, Cinemark Holdings, JC Penney, Alliance Data Systems and Yum China Holdings. The area features favorable workforce stats with a high population of prime-age workers and 57 percent of the labor force holding a bachelor’s degree or higher.
While North Texas offers an affordable lifestyle for employees, the business benefits have a growing appeal to companies. For instance, the Lone Star State does not have a state income tax or corporate income tax. While Texas offers additional incentives such as tax abatements, it also has an aggressive economic development policy which has recently proven successful in attracting companies.
In addition, North Texas boasts plenty of land for development, and Legacy West, also home to Toyota’s North American headquarters and Liberty Mutual’s regional hub, has become an ideal location for both business and retail. Areas West, like Westlake near DFW Airport are also seeing a large influx of business growth and new headquarter moves, like the Charles Schwab headquarter relocation after nearly a half century in San Francisco. As companies look to relocate out of New York and California, expect North Texas to become a destination for company headquarters, positively impacting the area economy.
As companies continue to grow, the area is becoming a talent magnet, drawing people from other states and countries. This becomes a prosperous economic cycle where strong job growth and wages stimulate consumption, leading to increasing revenue and profits for companies, who then hire more people to grow further. This has all culminated to the Dallas-Plano-Irving area seeing the largest increase in employment in the country (+3.8 percent) as of October 30, 2019.