From Palantir to Tesla: why corporates are taking their HQs to Sun Belt

From Palantir to D-Wave, a growing number of US companies are rethinking where they base themselves, accelerating a shift away from high-cost coastal hubs toward lower-tax, business-friendly states in the South and Southwest.

Palantir said on Tuesday it is relocating its headquarters to Miami from Denver, becoming the latest high-profile company to shift its base to South Florida.

Meanwhile, a broader reshuffling of corporate headquarters across the US has prompted questions about whether traditional business hubs are losing their sheen.

South Florida’s growing corporate pull

The absence of state personal income tax, lower corporate taxes, and no inheritance or intangible taxes are making Florida a highly attractive business destination.

At the same time, reduced "red tape" and streamlined regulatory processes allow companies to operate more efficiently compared to other states.

Last month, California-based quantum computing company D-Wave said it would relocate its headquarters to Boca Raton.

“The state offers a rich scientific and educational environment, a growing pool of highly skilled tech talent, and a vibrant spirit of innovation that made it attractive to D-Wave,” Chief Executive Alan Baratz said in a statement.

ServiceNow said in September 2025 it would add office space in West Palm Beach, while media company Playboy announced plans last year to move its global headquarters from Los Angeles to Florida.

The $51 billion hedge fund giant Citadel, founded by billionaire investor Ken Griffin, moved its headquarters to Miami from Chicago in recent years, while billionaire investor Carl Icahn relocated Icahn Enterprises from New York to Sunny Isles Beach in 2020.

High-profile individuals have followed.

Meta Platforms chief executive Mark Zuckerberg has reportedly bought property in Florida, while Palantir co-founder Peter Thiel has established a base in Miami.

Why are corporations moving away from California and New York?

Florida’s gains reflect a broader shift away from traditional corporate strongholds such as California and New York.

In late 2021, Tesla moved its headquarters to Austin, Texas. Chief executive Elon Musk cited housing affordability and limits to scaling in the Bay Area.

“It’s tough for people to afford houses, and people have to come in from far away….There’s a limit to how big you can scale in the Bay Area," CEO Elon Musk said then.

Energy major Chevron followed in 2024, announcing a move from California to Houston.

New York, meanwhile, has seen a steady departure of financial firms seeking lower taxes and costs.

Hedge fund Elliott Investment Management, founded by Paul Singer, moved its headquarters to West Palm Beach in 2020.

ARK Investment Management, led by Cathie Wood, shifted its base to St. Petersburg, Florida, a year later.

High taxes and a tightening regulatory environment have prompted companies to shift operations out of New York City to lower-tax, business-friendly southern states, particularly Texas and Florida.

Since the end of 2019, 158 financial firms managing nearly $1 trillion in assets had moved their headquarters or primary offices out of New York City, according to reports published in 2023.

When it comes to California, the state did not ease its tax and regulatory burden as much as rival states, a factor that may have contributed to the rise in headquarters departures, according to the Public Policy Institute of California.

Business leaders have also pushed back against a proposed ballot measure aimed at taxing billionaires to help fund healthcare.

The Billionaire Tax Act would impose a one-time 5% levy on the total wealth of Californians worth more than $1 billion.

The proposal has already drawn criticism from some of the state’s wealthiest residents, several of whom have urged companies to consider relocating.

What the data show

According to research by CBRE, corporate relocations surged during the pandemic, with 137 moves announced in 2021.

Momentum slowed in 2022 and 2023 as higher capital costs and office market constraints made relocations harder to execute.

In 2024, however, the trend reaccelerated, with 96 headquarters moves recorded.

Data covering 561 relocations between 2018 and 2024 show Texas as the top destination, while California metros continued to post net losses.

According to the Public Policy Institute of California, a net 789 company headquarters — about 1.9% of more than 47,000 — left California between 2011 and 2021.

The relocations accounted for roughly 3.7% of all headquarters jobs, or about 77,600 positions.

Larger firms were more likely to move, often citing taxes, regulation and costs.

At the same time, the institute cautioned that relocations alone do not tell the full story.

Between 2011 and 2021, far more headquarters were launched in California—7,250, or about 17% of firms based in the state—and closed, at 12,700, or roughly 30%, than moved elsewhere, with no clear upward or downward trend.

Focusing narrowly on relocations risks overlooking the broader mix of forces shaping headquarters activity and can misrepresent both companies’ willingness to base operations in California and the overall impact on jobs.

Taxes, housing and lifestyle shape relocation trends

While relocations have always been about economics, "the lure of lower tax rates, cheaper overhead and local incentives has fed a conveyor belt of companies from cities in the industrial north to sites in the Sun Belt," a Bloomberg report said.

In the most recent relocations, housing affordability has emerged as a decisive factor.

CBRE estimates that moving a tech company from San Francisco to Austin can reduce employee wages by about 15% due to lower living costs.

Texas benefits from the absence of personal and corporate income taxes, while Florida has positioned itself as a growth engine beyond tourism.

A 2024 report from the Florida Council of 100 highlighted the state’s low unemployment rate and efforts to attract finance, technology and life sciences investment.