Richardson 2011 Business Relocations/Expansions Already Double 2010s Impact

Richardson 2011 Business Relocations/Expansions Already Double 2010’s Impact

Just halfway through 2011, the jobs and occupancy resulting from Richardson business relocations and expansions are more than double last year’s totals. Through June, 24 completed projects reported by the REDP involve 5,174 new or retained jobs (versus 1,918 in 2010) and the occupancy of 1,334,728 square feet of non-retail commercial space (versus 631,032 in 2010).  

VCE - Governor Rick Perry was on hand for the March 8 announcement that VCE, a new Cloud Computing company created by three world-renowned companies VMware-Cisco Systems and EMC, would be establishing its headquarters in Richardson and spawning 450 very well-paying jobs. The move underscores the fact that Richardson, and North Texas generally, is already a major center for Cloud Computing because of the strong telecom, software, and data center owner/developer sectors in the region.

Ericsson - After a nearly decade-long absence, the Swedish telecom giant returned to Richardson in a big way. First, it purchased the Carrier Networks business from a floundering Nortel in 2009, and then in July of this year, Ericsson signed a lease for 460,000 SF at the Richardson Nortel campus to ensure the continued presence of approximately 1,000 former Nortel workers there and to add nearly 1,500 employers from the region. With the new total of 2,500, Ericsson is almost back to its pre-2000 workforce high in the Telecom Corridor.

Fossil – Fossil is one of the most internationally recognized companies in Richardson. In March, Fossil concluded a very creative agreement with KDC Real Estate Development & Investments, whereby Fossil will be able to consolidate its two Richardson operations into a single 535,771 SF facility that formerly served as the headquarters for Blue Cross & Blue Shield of Texas. KDC made the decision for Fossil easy, as it agreed to acquire all of Fossil’s existing Richardson buildings – a 190,000 SF headquarters and side-by-side 139,000 SF distribution center along with a 130,000 SF office building. When the transition is complete in October, Fossil’s 1,100 local employees will enjoy a roomy and renovated single campus that will become a familiar landmark on Richardson’s southern border.

 

Other projects on the 2011 list are indicative of some of the economic trends affect Richardson:

• Data centers are a key element in cloud computing, and Richardson is home to 10 company or operator-owned data center buildings comprising almost 1 million SF with five more planned or under construction. Richardson’s technology-oriented workforce, its secure environment, robust fiber connectivity and access to electricity make it a popular location for data centers.

• Available office space in large blocks of 100,000 SF or more are in abundance in Richardson. The 460,000 SF space that enabled Ericsson to quickly find a home for 1,500 workers was just the tip of the iceberg. Remaining are another eight or nine spaces that offer outstanding quality, pricing, access and visibility.

• Technology growth is evident, as more than 50% of the 24 companies represent technology-centric businesses. Factors that favor Richardson for a tech company relocation are:
• Superior access to the region’s skilled technology workers
• The presence of major technology companies
• UT Dallas’ educational resources
• Richardson’s history in launching many of the great technology companies that have come out of North Texas

Considering the fragile state of the national company, it is unlikely there will be a major overall economic uptick in Richardson environs. However, in niches like data centers and specific technologies, there should be some positive movement. With significant speculative office development still at least several years away and with relative scarcities in other northern suburban markets, Richardson’s abundance of large blocks of available office space will be an important factor going into the latter portion of 2011.