Economic Development - Expansions and Relocations

[J-Rob]

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

[cjd5050]

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

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. 

 

 

[J-Rob]

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

[cjd5050]

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.  

[CLT2014]

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 March 14, 2018 by CLT2014

[KJHburg]

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. 

[KJHburg]

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 March 14, 2018 by KJHburg

[SydneyCarton]

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 March 15, 2018 by SydneyCarton

[Missmylab4]

they did not look at Ballantyne. It was all much closer in to town. 

[KJHburg]

^^^ 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 March 15, 2018 by KJHburg

[Dale]

Over on Nashville UP they're saying AB wants a downtown location.

[KJHburg]

Turkish composites manufacturer opening new plant in Gaston County employing 200 first plant in USA 

https://www.bizjournals.com/charlotte/news/2018/03/22/composites-manufacturer-to-bring-200-jobs-to-this.html?ana=e_clt_bn_newsalert&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1521754038&j=80642591

[KJHburg]

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 March 27, 2018 by KJHburg

[CLT2014]

46 minutes ago, KJHburg said:

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/

Great news for the metro! 

To put things in perspective and why this is exciting: PayPal was planning a $3.4 million investment for 400 jobs, while Corvid is planning a $29 million investment for 367 jobs. Annual payroll will be $40.5 million at Corvid versus the $20.4 million proposed by PayPal (average salary of $110,000 at Corvid versus $50,000 at PayPal). 

This is a great expansion for the metro of high paying jobs and a sign of confidence that our region can produce top talent with Masters Degrees and PhDs in the sciences and engineering. It bring the prestige of a larger HQ campus of a locally grown company, rather than a customer service/ back office campus for a Silicon Valley firm looking for cheap labor. It may not be a household name, but this is a great expansion in the metro. 

"The Mooresville location will be Corvid’s main campus and headquarters. The project will include two, three-story buildings, a data center for high-performance computing, a mechanics lab, and a prototyping lab. " The office will be in the Langtree area (Exit 31). 

Edited March 27, 2018 by CLT2014

[J-Rob]

Interesting article in the CBJ this morning about Charlotte Regional Partnership activity in 2017 and 2018.  There weren't new details, but Amazon and Apple were both mentioned.

https://www.bizjournals.com/charlotte/news/2018/04/25/after-99-projects-in-2017-charlotte-economic.html

This was by far the most interesting tid-bit to me.  Not that it would be in their best interest to share how they approach this, but the curious resident in me would love to know more about this.

[KJHburg]

^^^ I saw that too that is really interesting.  In the case of NN Inc. it was a growing company with locations nationwide in a very small market without good airport access.  CLT airport is the regions greatest asset other than people.  

I really  think Apple may come to NC maybe here in Charlotte or maybe in the Raleigh area.  Tim Cook and the CFO both went to Duke and both worked with IBM in RTP so there are so NC ties.  Not to mention their huge $1 B data center campus in Maiden in Catawaba County.   I think they need an east coast location as they have said it will not be in Texas or of course California.  

[atlrvr]

If Apple comes to Charlotte, it will almost certainly be York Co or Lancaster Co.

[Dale]

Techies do seem to love them some suburbs.

[Guest]

5 hours ago, atlrvr said:

If Apple comes to Charlotte, it will almost certainly be York Co or Lancaster Co.

DUPLICATE

Edited April 26, 2018 by Guest

[Guest]

5 hours ago, atlrvr said:

If Apple comes to Charlotte, it will almost certainly be York Co or Lancaster Co.

I've actually heard some VERY interesting things about Lincoln County/ Catawba County 

Edited April 26, 2018 by Guest

[KJHburg]

 I know some of you think this is NOT coming to Charlotte (AllianceBernstein) but I wonder if they are waiting to see how the May 1 vote on transit and light rail in Nashville will turn out.  I remember someone said MetLife was not coming to Charlotte but it did at another site (Ballantyne)   Even if Nashville approves transit it is years off whereby AB could move here tomorrow and have transit options for its employees. 

So we will see soon hopefully  http://www.charlotteobserver.com/news/business/article209911664.html

Edited April 27, 2018 by KJHburg

[CLT2014]

I hope this goes our way and Nashville just has an internal source that leaks more to the Nashville Business Journal, hence more articles about it there. 

Depending on the types of positions they plan to move, they would be making a big mistake to pick Nashville in my opinion. Now if they just want to move accounting, HR, corporate finance, corporate communications, customer service, etc... that doesn't touch the investing side... Nashville might be just as good talent wise. HR and accountants exist all over the country and the best incentive package will probably win out. 

Edited April 27, 2018 by CLT2014

[Dale]

On 4/27/2018 at 9:22 AM, KJHburg said:

 I know some of you think this is NOT coming to Charlotte (AllianceBernstein) but I wonder if they are waiting to see how the May 1 vote on transit and light rail in Nashville will turn out.  I remember someone said MetLife was not coming to Charlotte but it did at another site (Ballantyne)   Even if Nashville approves transit it is years off whereby AB could move here tomorrow and have transit options for its employees. 

So we will see soon hopefully  http://www.charlotteobserver.com/news/business/article209911664.html

Yeah, hard to believe a company would be waiting on the Nashville transit vote. The subway would take nearly a decade. In less time than that, should the vote fail, I could easily imagine Nashville having an alternative system up and running.

[smeagolsfree]

I know where but cant say where, but I am 99.9% sure I know.

[J-Rob]

Well the fact that you are a Nashville area moderator is probably a good clue.  Disappointing for Charlotte if I am connecting dots appropriately.