State Farm has recently leased up about 2.5 million square feet of commercial work space in Richardson, Texas (North Dallas) in what appears to be the largest office lease in Dallas County history. State Farm continues to put out the line that they are not leaving Bloomington, IL, but all signs point to a probable move. In 2010 Illinois increased the corporate tax rate by 67% and they now have the worst credit rating of any state in the U.S. Welcome to Texas, State Farm. You’re going to like it here. No corporate or personal income tax.
Insurance chain State Farm is reportedly buying up substantial workspace in Texas, which may signal a coming exodus from the company’s home state of Illinois.
State Farm is keeping the move quiet so as not to alarm employees. But the Dallas Morning News reports that it is a “major business relocation” already underway and that this is “one of the biggest stories in the Dallas-area real estate market and will ultimately involve thousands of workers.”
Texas-based real estate expert Bob Gibbons notes in a blog post that State Farm’s Dallas office space lease–about 2.5 million square feet of workspace in a few different places–is the Dallas area’s largest-ever office space lease by a single company.
The Atlanta Journal-Constitution reported this week, too, that State Farm leased several hundred thousand more square feet of office space in Atlanta.
The company has 3.6 million square feet of office space in central Illinois and the spaces in Atlanta and Dallas easily total that amount.
At the end of 2010, in a special session, the Illinois Legislature passed a 67% hike in its corporate and personal income tax. The state is struggling with a structural deficit and its credit rating was recently lowered. The state now has the worst credit rating in the country. A number of businesses have floated the idea of leaving the state. A move by State Farm, however, would devastate the downstate economy.
State Farm says publicly it is not moving its headquarters from Bloomington, Illinois, but reporters in Atlanta and in Dallas do not seem persuaded. They have tried to figure out where all the workers would be coming from to occupy the new office spaces.
Illinois Democratic Sen. Dick Durbin does not seem to be buying it either. While he told Breitbart News’ Kerry Picket he needs “to learn a little bit more about” the specifics of the State Farm moves, he expressed some concern over the potential Illinois may lose a huge workforce. “It’s a very respected important business in Illinois,” Durbin said of State Farm. “It’s a very large workforce in Bloomington.”
Continue reading here. Hat tip Breitbart.