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A Second Look at the "California Money Pitch"

An analysis of Texas again proves the fallacy of the "West Coast Money" theory.

By Jonathan Hipp | Updated on October 30, 2013

Note: This is a follow up to the “’West Coast Money’ is a Fallacy!” article in which the data clearly depicted contradictory evidence to the supposed power of the “West Coast Money” theory – whereas the previous article looked at Florida, this article focuses on Texas.

The “West Coast Money” theory derives from California being a high-tax state and that most net lease buildings across the United States are owned by a California buyer/investor. This article will shine some light on why this is not the case through an analysis of net lease owners in Texas. In our previous article on this topic (focusing on Florida) it was proved the largest contingency of owners in Florida of private STNL Walgreens and CVS properties came from instate investors at 53.81% and California/ West Coast buyers were only a small percentage of 6.57%. The former article proved that this percentage was significantly lower than previously thought. However, the “California money” pitch theory deserves a second look; it has been previously disproved using Florida’s statistics about lease ownership and their locality. For this article, we will further debunk this theory using Texas.

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