J-Rob

Economic Development - Expansions and Relocations

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Since I think the Amazon HQ2 thread should be officially retired, I thought it would be good to have a general Economic Development topic.  If one exists, I couldn't find it.  Obviously the city's ability to recruit relocations and expansions to Charlotte directly impacts urban planning and increased density in the central business district.  @ricky_davis_fan_21 mentioned this in the Amazon HQ2 thread, but the CBJ is reporting on  AllianceBernstein Holding L.P.  scouting Charlotte.  Charlotte makes so much more sense to me than Nashville does, simply because of the deep talent pool here.  If we can't win this expansion... well, let's just hope we can land this.  I would love to see an eventual tower on North Tryon, in South End, or in Elizabeth near the Grubb properties.  Sounds like they plan to try to make a decision in the next 3 months or so.

https://www.bizjournals.com/charlotte/news/2018/03/13/exclusive-new-york-financial-powerhouse-scouts.html

AB.jpg.a46ea35dcf8931c53d8d58c29ef975b4.jpg

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45 minutes ago, J-Rob said:

Since I think the Amazon HQ2 thread should be officially retired, I thought it would be good to have a general Economic Development topic.  If one exists, I couldn't find it.  Obviously the city's ability to recruit relocations and expansions to Charlotte directly impacts urban planning and increased density in the central business district.  @ricky_davis_fan_21 mentioned this in the Amazon HQ2 thread, but the CBJ is reporting on  AllianceBernstein Holding L.P.  scouting Charlotte.  Charlotte makes so much more sense to me than Nashville does, simply because of the deep talent pool here.  If we can't win this expansion... well, let's just hope we can land this.  I would love to see an eventual tower on North Tryon, in South End, or in Elizabeth near the Grubb properties.  Sounds like they plan to try to make a decision in the next 3 months or so.

https://www.bizjournals.com/charlotte/news/2018/03/13/exclusive-new-york-financial-powerhouse-scouts.html

AB.jpg.a46ea35dcf8931c53d8d58c29ef975b4.jpg

Am I reading this correctly in that if AllianceBernstein were to open an office here we would be looking at 2,000 total employees and the need for 400,000 sf of office space?  1,000 employees for AB and 1,000 for AXA?  

That's half a new tower if so.  No?

Very exciting news for sure. 

 

 

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5 minutes ago, cjd5050 said:

Am I reading this correctly in that if AllianceBernstein were to open an office here we would be looking at 2,000 total employees and the need for 400,000 sf of office space?  1,000 employees for AB and 1,000 for AXA?  

That's half a new tower if so.  No?

Very exciting news for sure. 

The AXA expansion was already announced and will be in the University area.  They already had around 500 positions here, and are adding 550, which will bring their total to over 1,000.  The AllianceBernstein expansion is separate, but hopefully the AXA connection gives Charlotte a leg up on Nashville and San Antonio.  

I don't know if AXA and AllianceBernstein would co-locate in the University area.  My guess is they would have separate facilities, but what do I know.

https://www.bizjournals.com/charlotte/news/2017/05/09/exclusive-axa-expanding-in-charlotte-with-550-jobs.html

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7 minutes ago, J-Rob said:

The AXA expansion was already announced and will be in the University area.  They already had around 500 positions here, and are adding 550, which will bring their total to over 1,000.  The AllianceBernstein expansion is separate, but hopefully the AXA connection gives Charlotte a leg up on Nashville and San Antonio.  

I don't know if AXA and AllianceBernstein would co-locate in the University area.  My guess is they would have separate facilities, but what do I know.

https://www.bizjournals.com/charlotte/news/2017/05/09/exclusive-axa-expanding-in-charlotte-with-550-jobs.html

Reading this CO article (http://www.charlotteobserver.com/news/business/article149507139.html) it said that the first way of jobs were back office, which makes sense for a University area location.  But it expands that the new jobs would include information technology, finance, legal, accounting, customer service and human resources...which feel more of an uptown gig.  I would assume the AB jobs would also be higher end.  So that's what I based my hopes on a new tower.  :)

Fingers crossed regardless.  This would be a very welcome addition for sure.  

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1 hour ago, J-Rob said:

 Charlotte makes so much more sense to me than Nashville does, simply because of the deep talent pool here.  If we can't win this expansion... well, let's just hope we can land this. 

Depending on the goal of management and the types of jobs they are moving here, there are pluses and minuses to the talent pool here. For example, BofA has pushed paid maternity / paternity leave benefits up to 4 months. AllianceBernstein is significantly lower. Most of the banks do year round 401k matching. AB only does the 401k match in January... meaning if you quit in November you get $0 match for that year. The banks here often let people work from home on a Friday... AB might not like that, but they'd be pushing up against people's expectations in the job marketplace here. They battle it out against other firms in the New York City market as well... and might be looking forward to some relief for that in a city with lower cost of living / less competition.

 In Nashville, they might be able to have a bigger influence on what the prevailing financial services industry expectation is for wages, benefits, and corporate culture rather than have to match whatever BofA, Wells, and other bigger financial service employers in Charlotte are doing. You'll notice on GlassDoor there is a big variance in the reviews from NYC based employees and San Antonio, TX based employees. NYC employees complaining about poor benefits compared to others, limited vacation, etc.... while San Antonio employees seem pretty satisfied and say everything meets their expectations. If you are working in San Antonio in financial services though you have USAA and some other bank back offices so they don't have to get as competitive to keep talent. 

Edited by CLT2014

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I don't think AXA or Alliance Bernstein would colocate at all.  AXA will be and is  in the university area at Innovation Park the old IBM campus made into a multitenant office park.  Alliance Bernstein may need 200K of office space there is a brand new 238,000 sq ft Capitol Tower ready for a tenant.  If they come to Charlotte and I hope they do possibly there in SouthPark area. 

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From the Triangle Business Journal and from an a big time economic development consultant   (emphasis mine) 

""Site selection consultant John Boyd says interest in North Carolina from major financial firms is high – and that the costs of doing business here could be why. Boyd, of the Boyd Company in New Jersey, was in town recently to talk with legislators and clients about economic development interest in the state.  “Over the past two years, New York City has lost over 30,000 banking jobs to secondary markets like Charlotte and Raleigh,” he says in an interview from the lobby of Raleigh’s Marriott Crabtree Valley hotel, noting that, with regulatory rollback, “this trend is going to accelerate astronomically.” 

That is why a company like Alliance Bernstein is looking this way.  Raleigh has attracted the likes of DB and Fidelity Investments and they employ thousands there. 

One more quote" “We’ve never seen more projects out there than we’re seeing right now,” he says, noting that the “common denominator” is low-cost markets – particularly in right-to-work Southeast states such as North Carolina.""

Edited by KJHburg
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Alliance Berstein would likely go to Ballantyne.  Most of those workers  would come from NY, and they’d want to live in South Charlotte or Union County.  They will want an easy commute.

This is great news.

 

Edited by SydneyCarton
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^^^ Good I have several scenarios for Alliance Bernstein:  the LH Capitol Tower that is complete and fully vacant,  or moving into the LH BOAT tower along with BofA until a new building is built or a chunk of the Railyard or 300 South Brevard.  Plenty of options for them here immediately or within a year.  Forgot the huge block in Charlotte Plaza where the CLT school of Law was.  That block is about 250K or so too and available now. 

Edited by KJHburg
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Here you go 367 jobs added to defense contractor in Mooresville. Average wage $110,000!  Good for the region and southern Iredell county.  https://www.bizjournals.com/charlotte/news/2018/03/27/engineering-firm-to-expand-mooresville-campus.html

2/3 of their employees with Masters or PhDs https://www.corvidtec.com/

Edited by KJHburg
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