Sugar Land Home to Successful Corporate Headquarters Relocations

Corporations flat-out want to move to Texas. The Lone Star state has attracted the most headquarters relocations (209) among US states, according to CBRE.

Of the 209 to do so, Sugar Land, Texas, is one of their most desired locations. It is home to a highly educated workforce, with almost 60% of residents possessing a bachelor’s degree or higher.

Its workforce rose by more than 14% between 2015 and mid-2020—twice the national average and more than three times the regional average.

The market includes several means of transportation including two airports, one of which will soon have self-driving taxis, an autonomous air taxi.

Alba Penate-Johnson, Assistant Director at the Sugar Land Office of Economic Development & Tourism (SLOEDT), tells GlobeSt.com that the Sugar Land Economic Development team works closely with businesses to find the right state and local financial incentives, including corporate tax incentives, office retention incentives, tax abatements, real estate property taxes.

By adjusting zoning and streamlining the permitting processes through an online Citizen Self-Service portal, it further fosters business growth.

Among the examples is Accredo Packaging, a company homegrown in Sugar Land. Opened in 2009, the Sugar Land Office of Economic Development and Tourism (SLOEDT) has helped to facilitate the company’s expansions through various tax abatement agreements, including a LEED tax abatement incentive to encourage green development.

Additionally, SLOEDT helped facilitate a direct incentive with Accredo to complete its third expansion.

Approved in 2018, the $180,000 direct incentive agreement assisted the company in completing the $50 million project. This expansion added 200,000 square feet to Accredo’s facility totaling just under 550,000 square feet.

This year, Accredo Packaging completed its fourth expansion in Sugar Land, representing $10 million in capital investment and adding 83,000 square feet to its Sugar Land headquarters. The company also pledged to maintain at least 525 employees through 2031. With the help of SLOEDT, Accredo Packaging has been able to triple the size of its workforce since its founding.

Another is SouthWest Water Company, which came to Sugar Land in 1985.

In December, SouthWest Water Company signed a 15-year lease at 2150 Town Square Place occupying 41,114 square feet. The company’s new facility was formerly occupied by Minute Maid and remodeled in 2019.

Additionally, this new location has provided SouthWest Water’s employees with various amenities, including restaurants, green space, and retail in Sugar Land Town Square. The amenities help to improve the quality of life for its employees.

To facilitate this new lease, the Sugar Land Development Corporation (SLDC) approved a $1 million incentive, payable over two years. This expansion will create 20 new jobs, adding to the company’s workforce of more than 100 employees whose average annual salaries are more than $78,000.

This agreement also allowed SLOEDT to assist in relocating the headquarters from an industrial use space to an existing office building, generating a victory for SLOEDT’s Office Infill Program.

Penate-Johnson said SLOEDT has prospered by showing it is committed to adapting to changes in market trends and demands.

SLOEDT and the City are currently working on adding flexibility to the City’s zoning regulations as well as updating our financial incentives to make Sugar Land more competitive. SLOEDT is also exploring new programs such as updating the City’s office infrastructure. SLOEDT recognizes that office users seek modern office spaces with access to amenities and other quality-of-life improvements.

Sugar Land’s commitment to redevelopment is another factor that makes it an attractive business location. The city is actively transforming itself into a vibrant and thriving community.

A prime example of this is the Imperial Char House, Sugar Land’s namesake, which is undergoing a $1 billion adaptive reuse transformation into a modern, mixed-use property.

Penate-Johnson said this transformation will include office space, retail, restaurants, and bars, creating a dynamic business and social hub. The Lake Pointe redevelopment project is another significant endeavor, set to transform into an urban-style village with offices, retail, and housing. With significant water frontage from the 37-acre Brooks Lake and 1.5 miles of frontage on Oyster Creek, this project will further enhance Sugar Land’s appeal as a vibrant community.