4 ms·

Exactly, yet for some reason we never see articles about finance leaving Wall St in search of lower costs, or entertainment leaving Hollywood, etc.

• telotortium 10y ago
  Has the American auto industry moved out of Detroit? A more accurate way of stating your point is to say these industries haven't moved their headquarters en masse out of those cities. Lots of financial firms in New York have moved their back office operations to New Jersey, and there are probably a fair number of firms in NJ too, to say nothing of the other locations where they run their more quotidian operations. A lot of firms have also moved to Midtown, since the original reason firms were based in Wall Street was due to the need to minimize the time needed to trade in person. Similarly , it's old news by now that Hollywood has taken advantage of tax credits in many states as well as Canada to film and even do production for many movies outside of the Los Angeles area. Even in Silicon Valley, lots of the old-school hardware, networking, and enterprise software companies have moved many of their operations to cheaper areas once profit margins fell. If Google and Facebook start seeing margins fall significantly, they can do the same. The strength of tech in Silicon Valley is dependent on a continued supply of high-margin businesses. Even if tech loses its luster, many companies will continue to be headquartered in Silicon Valley, simply because few new tech companies will be founded at all. They'll probably move most of their operations to other areas though.
  • RhodesianHunter 10y ago
    You're already seeing this with FB and Google leasing several floors in downtown Austin and Oracle building out a campus on the east side.
    • muzz 10y ago
      Yes these are the non-critical back office operations, not the core business and innovation.