- Public Storage relocating headquarters from California to Frisco, Texas
- Company cites talent access and corporate reorganisation
- Glendale operations to continue; job transfer numbers undisclosed
- Move aligns with broader corporate migration to Texas
The most recent high-profile move in a larger exodus of companies off the West Coast to the Lone Star State has been the corporate headquarters of Public Storage, the largest self-storage operator in the United States, switching its location to Frisco, Texas.
The move was confirmed by the company as a part of a larger corporate reorganization, which was announced earlier in the month. Public Storage, in a statement, has forecasted that it will have an advantage in the richness of talent and creative power in the North Texas market. Frisco, a city in the north of Dallas is a relatively new corporate center that has gained momentum in recent years with financial, technology and real estate companies drawn to it.
Although the headquarters is relocated, Public Storage claimed that it will continue to have a long-term presence in the city of Glendale, which it has had a home in a period of over 50 years. The company failed to outline the number of positions that would be transferred to Texas or California.
Public Storage was established in El Cajon, California in 1972 by Wayne Hughes and Ken Volk but grew very quickly over the next decades. Today, it has over 5,000 employees and it has thousands of storage facilities throughout the country thus making it the force in self-storage.
A segment of a Larger Corporate Migration
The move puts Public storage in a list of companies that are increasingly changing headquarters or operations in Texas. Several industries such as technology and real estate industries, energy and consumer products have made similar announcements in recent years.
North Texas and Frisco specifically have been promoted as a business-welcoming substitute to California, with less taxation, a relatively inexpensive commercial property and less regulation. Dallas-Fort Worth metro area has witnessed a long term population expansion and this has attracted corporate investment in addition to the residential developments.
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The political and fiscal arguments in California too have influenced the movement. Suggestions like new taxes on high income earners have also encouraged some of the executives and investors to locate businesses or homes in Texas. David Sacks, founder of venture capitalist firm, set up shop in Austin last year, and Google co-founder Larry Page has made his artificial intelligence venture headquartered at an address in Texas.
The same decisions were made by high-profile entrepreneurs. In 2021, Tesla and SpaceX left their headquarters in California to move to the state of Texas and Elon Musk himself relocated to Texas, citing regulatory and business climate issues. Since that time, Austin has grown to be a more significant technology hub, and competes on a more equal footing with Silicon Valley.
The Emergence of Frisco as a Corporate City
Frisco has been included in what some observers have referred to as New Texas, a fast-growing suburb to the north of Dallas which has attracted corporate transfers and out-of-state higher-income households. Major investment in the region has been made in office parks, mixed-use development and infrastructure to handle the influx.
The local real estate markets have been affected. In the residential area of the Dallas-Fort Worth region, demand has risen because executives and other professionals are transferring their enterprises out of California and other states. There has also been an increase in commercial office leasing activity with the geographical location in the central of the United States of America and the proximity to the national transportation systems being cited by companies as an advantage.
In the case of Public storage, relocation of the headquarters is not a complete withdrawal of the company in California but a strategic change. The company pointed out that it would still have facilities operating across the state and would remain in the city of Glendale. California has been among the biggest self-storage markets in the US, owing to the high concentration of people in cities and high cost of housing, which in most cases makes people resort to off-site storage.
Public Storage Move Hints at More HQ Transfers From California to Texas
Public storage has not released specific financial estimates in connection with the relocation, however, companies that have changed headquarters have often mentioned long-term economies of scale and availability of labor markets as reasons. Texas lacks state income tax that can be appealing to both employees and corporation.
The self-storey business has grown consistently within the last ten years and this growth has been enabled by population mobility, urbanization and the evolving housing trends. The move of Public Storage to base their executive at Frisco only highlights how Texas is still attractive to big businesses with the desire to have operational flexibility but with national footprints.
The move of the company contributes to the list of other businesses that are reviewing their geographical approaches even though they retain working relationships with California, which is an emerging business corporate landscape to the United States.
Recommended FAQ’s
Why did Public Storage move its headquarters to Texas?
The company cited access to talent and business advantages in North Texas as part of a broader corporate reorganization. Texas offers lower taxes and fewer regulatory burdens compared with California.
Is Public Storage leaving California completely?
No. The company said it will maintain a long-term presence in Glendale, where it has operated for more than 50 years. Facilities across California will continue to operate.
Why are companies relocating from California to Texas?
Businesses often point to lower taxes, reduced regulation and lower commercial property costs in Texas. Population growth in the Dallas-Fort Worth area has also attracted corporate investment.
Why is Frisco, Texas becoming a corporate hub?
Frisco has seen major investment in office parks, mixed-use developments and infrastructure. Its location within the Dallas-Fort Worth metro area and business-friendly policies have drawn firms from tech, finance and real estate sectors.
How does Texas benefit companies financially?
Texas does not impose a state income tax, which can appeal to both corporations and employees. Companies that relocate often cite long-term cost savings and access to a growing labor market.
