Oracle's move to Austin may spur further California influx

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Oracle's move to Austin may spur further California influx

Neil Narayan
Real Estate Broker · Austin, TX · Member since 2015 · 715 posts · 527 votes

On December 11, Oracle, the world's largest data base company, announced it was moving its headquarters from Silicon Valley to Austin. The announcement, coupled with major expansions underway by Apple, Facebook, Tesla, and others, is a feather in the cap of local business boosters. 

Whether you’re a champion or a critic of the Oracle relocation, the ongoing influx of companies and executives from California shows no signs of letting up. In fact, some observers speculate that Facebook could follow Oracle in shifting its headquarters from the high-cost San Francisco Bay Area to lower-cost Austin. On December 4, the Austin Business Journal reported that Facebook is hunting for 1 million square feet of offices in addition to the space it already leases here.

https://austin.culturemap.com/...

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Justin Thorpe
Member since 2020 · 437 posts · 675 votes
5y

The irony in this post (as with many others like this) is it assumes a Zero sum game. Like SF/Silicon Valley has to fail for Austin to grow.

I am bullish on Austin but I am, as I have been for a long time, but I am more bullish on SF. I think they will both grow.

My hope is more local startups grow in Austin vs people dancing in the streets because a old line tech company decided to move its “HQ” to Austin. It should not be a zero sum game.

If the rest of America wants to prosper and the only way for that to happen is for SF to fail, we as a country are playing the wrong game.

And that’s what actually differentiates Silicon Valley, this place is not looking for the Midwest or the Southeast to fail for it to prosper, this place creates prosperity through innovation.

I will say this that Oracle was the “Google or Facebook” in the mid 90s. Today the best engineer will steer clear of that company and head for other techs. I think Oracle will find it easier to attract talent in Austin. It was not easy for Oracle to attract talent anymore.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y

    boy this reminds me of growing up in Cupertino in the 60s and 70s..  hold on to your hat..

    although with remote work now.. I wonder how many Oracle folks that live in the bay area have bought VERY expensive homes.. will just choose to stay there and work from home..

    Keep in mind its still CA weather..  and that draws a Lot of folks. and keeps them there. 

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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    5y

    @Jay Hinrichs I think that plenty will stay in CA but also lots will move. People forget that Austin is a relatively small city. When people start moving here in droves it feels like a flood and has affected the housing stock accordingly with our inventory down to 1 month.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Jordan Moorhead:

    @Jay Hinrichs I think that plenty will stay in CA but also lots will move. People forget that Austin is a relatively small city. When people start moving here in droves it feels like a flood and has affected the housing stock accordingly with our inventory down to 1 month.

    I suspect many will also come from other parts of the country especially parts of the country were they dont think twice of heat humidity thunderstorms tornados etc.. all things the SF bay area has none of  LOL.  But its going to happen what a great place to be a transactional real estate agent

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  • Neil Narayan
    OP
    Real Estate Broker · Austin, TX · Member since 2015 · 715 posts · 527 votes
    5y

    I can tell you have had at least a dozen call just this week from folks in Cali either planning to move here or invest here ... the reverse gold rush has started :)

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  • Robert TinkerPro Member
    Rental Property Investor · Round Rock, TX · Member since 2019 · 251 posts · 159 votes
    5y

    With California raising their income tax and trying to repeal/ pushback/alter prop.13 , there's going to a lot more moving here, Tennessee and Florida

    1Reply
  • Andrew Bissada
    Investor · Austin, TX · Member since 2020 · 60 posts · 12 votes
    5y

    Couldn't seem to find it from Googling... do they have a proposed address for the new Oracle location?

    The one in that document I believe is an already existing location.

    0Reply
  • Steve R.
    Member since 2017 · 93 posts · 44 votes
    5y

    @Andrew Bissada

    It's most likely going to be the huge campus near riverside.

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    5y

    I keep hearing and reading that Austin is a "small city."  It's not - it has more people than San Fran or Seattle or Denver.

    1Reply
  • Justin Thorpe
    Member since 2020 · 437 posts · 675 votes
    5y

    The irony in this post (as with many others like this) is it assumes a Zero sum game. Like SF/Silicon Valley has to fail for Austin to grow.

    I am bullish on Austin but I am, as I have been for a long time, but I am more bullish on SF. I think they will both grow.

    My hope is more local startups grow in Austin vs people dancing in the streets because a old line tech company decided to move its “HQ” to Austin. It should not be a zero sum game.

    If the rest of America wants to prosper and the only way for that to happen is for SF to fail, we as a country are playing the wrong game.

    And that’s what actually differentiates Silicon Valley, this place is not looking for the Midwest or the Southeast to fail for it to prosper, this place creates prosperity through innovation.

    I will say this that Oracle was the “Google or Facebook” in the mid 90s. Today the best engineer will steer clear of that company and head for other techs. I think Oracle will find it easier to attract talent in Austin. It was not easy for Oracle to attract talent anymore.

    3Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    5y

    Oracle already has a large presence in Austin with several campuses. Their largest and newest campus is SE of downtown on the eastern shore of the river. The HQ move will bring some additional jobs, but they already have a good presence here. Still, it is welcome news in Austin.

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    5y

    @Justin Thorpe great point.

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  • Justin Thorpe
    Member since 2020 · 437 posts · 675 votes
    5y

    2 years back there were almost daily articles about tech companies moving to the NY / tri state area. 4 years back it was Boston. Now it’s Austin.

    Personally I would love to see tech innovation everywhere in America. I think SF has had a disproportionate share of it until now and the rest of the country except Seattle had not kept pace one bit.

    The fun will start will companies from Austin, Denver etc are starting small and becoming the next AirBnB, Doordash, Snowflake etc.

    What we are seeing however is old line tech companies bowing out of the valley and moving to cheaper locations. It’s not a 1:1 but we have seen this movie a few times over. Geo expansion is not new. In fact we have seen a lot of companies set shop in Bangalore over the past 7 years and most recently Tel Aviv, has been raging hot because of the quality of talent there.

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