Is Bank of America Leaving Charlotte?
My personal feeling is that BOA isn’t going anywhere! Does it really matter where the CEO lives? In this day and time, with all of our technological advances and the increasing ability to do our jobs from the office, our homes or the beach and the video conferencing capabilities that we so often use, I can't imagine why this topic has gotten Charlotte residents so up in arms over the location of the new CEO of Bank of America.
Bank of America owns far too much real estate here in Charlotte that to sell it and purchase FAR more expensive real estate in NY in this market is, in my opinion, simply ludicrous! And, to whom are they going to sell?!
Another consideration is the cost of relocating their personnel to NY . Imagine the taxes that they'd have to pay in New York--well above and beyond those here in Charlotte.
Those factors would (should) deter any business from relocating from ‘reasonable’ Charlotte, NC to ‘exorbitant’ New York!
(Sorry NY friends--I have helped numerous transferees from NY and they all concur that our taxes are far less than those which they had been used to paying in New York)!
The City of Charlotte and the Charlotte Chamber of Commerce are both working towards a more appealing business climate here in Charlotte. Charlotte has always been ahead of the curve with small and large business relations. Over the last decade, Charlotte has been one of the most forward-thinking metropolitan areas in the country—and that is expected to continue with our new leadership.
So, no, I don't think Bank of America headquarters is moving anywhere, anytime soon!
Just my humble opinion!
(THE best Charlotte home search available - no kidding!)
Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310
I suppose that could be huge if they did, but why would they. Real Estate is much cheaper in Charlotte, plus it give the CEO an excuse to use his private jet more often.
Agreed that this is ludicrous! When AIG started crying for money last year I looked up their headquarters and they were in some of the priciest locations in the US. It's infuriating to say the least! BOA - STAY IN CHARLOTTE!
Formerly The Bank of America Tower?
I just read in the ATL Business Chronicle about the CEO of Vonage, Inc is gong to pay their CEO $500,000 per year JUST FOR AIR TRAVEL EXPENSES between his Atlanta home and the company office in New Jersey!
Who says the CEO has to be in the same city, or even state?
I agree Debe! We've had enough changes in Charlotte. Great post!
There is a huge difference between prices of real estate and taxes.
If BOA has a sense of doing good business, they would stay in SC.
Debe,
That would be a costly decision if they tried to dot it. I mean if the new CEO had any sense he would contact you about finding a great home in Charlotte. Hey why don't you send him a relocation packet and show him how much home he could get for his money down here.
Debe,
That would be a costly decision if they tried to dot it. I mean if the new CEO had any sense he would contact you about finding a great home in Charlotte. Hey why don't you send him a relocation packet and show him how much home he could get for his money down here.
Debe - so if they move and are looking for new space does that mean they have lots of money stashed away somewhere??? ~Rita
Debe, That made me laugh. If they relocated to NY no one could afford to come with them! The difference in not only taxes but costs of living are not comparable.....I can't imagine they'll be moving to New York!
Debe,
It is interesting to read the blog and the comments. I do not think that looking at it as a least expensive business decision is not what the whole thing is about. If a million-dollar price tag is a concern, of course they would not have move their finger. There may be money serious enough going into the most expensive market in the nation
My bet is that if it is in the works they would land in New Jersey, certainly not in Manhattan. Citibank is headquarted in NY, but it's credit division is in North Dakota. That is because the usuary laws were more liberal, and the pay scale was drastically different.
The lifestyle at the top is just a tiny bit different from the subway riders in NY. Would it be possible that they are looking for a tax break to stay put? Why would they want to be nose to nose with Citibank or Chase Manhattan?
Hi Debe.....The Cat is out of the bag, they want to expand and are Moving Lock Stock and Barrel to Victoria BC.
If you haven't heard a rumor by Noon start one...and I hear you're Moving here too :O))
The cost of living for their employees in NY would be tons more. Bet it is one of those rumors that gains a life of it's own. Plus the negative publicity would not be in their favor.
Debe, Not being cynical, but how much would it cost the taxpayers to move these folks? I sure wish that someone would hand me a bucket of "bail-out" money...
Helping you live your American dream...
Debe, typically a big company will threaten a move to induce local governments to give them more incentives (read that to mean you, the tax payer, will pay for this) to stay.
A client moved from the Dallas area to Charlotte for her job some 3 years ago. I think she loves it where you're at and she's been acquiring more properties also. Just for personal reasons, I too wish it's staying where it's at.
Good morning Debe,
You have presented a well thought out reasoning as to why BOA will stay and I hope that they will. However, with all of that government money who knows what they will do.
So what would be the reason BOA would even consider moving out of Charlotte?
I agree Debe...doesn't sound like it would be a good business move.
~Deb in Cape Coral, FL
Move to New York? Nah, no way. Potentially move to Washington, DC? Maybe. Why would one leave an area that offers so much for an area that is so "not Charlotte!"
I thought people were leaving N.Y because of the taxes.
Well not many...but I have heard of companies leaving and individuals.
We are closing on a home here with N.Y buyers in 2 weeks...cost of living too high.
Debe,
I agree with your opinion and Gary says it well also "Nah, no way!" BOA surely knows they have a good thing in Charlotte!
Dan: Exactly! I'm sure the budget for jetting the CEO back and forth would be much less than entire corporate move.
Renee: Here, here! I don't understand why they'd want to be in such expensive locations--it makes NO business sense at all to me!
Thom: Hey, I love your photo! Is BOA looking for MORE space or moving space? I understand their theory that renting the space out to other companies and finding cheaper rental space elsewhere for their employees but, are they looking for additional space? If so, that could be a good thing for you guys! And, the cost of air travel for the Vonage CEO is outrageous! You'd think Vonage would create a less expensive alternative--like ONLINE CONFERENCING! OH, wait...don't they already DO that?! Why not a flight once per quarter?! Oh, if I only ran a large business... ;0)
Melissa: HEY! Isn't it the truth?! I had a conversation a few weeks back with John Lassiter about this at our Rotary meeting and he concurred. I came away feeling pretty pumped that it probably won't happen. Keeping fingers crossed!
Larry: Much too costly, in my opinion! And, you have a great idea!! LOL We actually handle their relocation so, who knows... ;-)
Rita: HA! Yes, it's money that you and I and our children's children and so on, will be contributing!
Carole: Cost of living is so cheap here compared to your area--even going into NJ--you just can't compare the two and I don't imagine that they're truly considering it. If they are, my money is going into another bank account!!
Jon: As connected as we are to the world wide web, I can fathom that they would consider going into a more expensive market--money is money, no matter where it is! Why not be the leader here instead of competing with CITI, Chase and the other biggies?!
Mary Jo: Excellent point and certainly one to consider. I too, as commented above, agree that it wouldn't be beneficial to be nose to nose with CITI or Chase!
Fred: LOL Would you taceh me the ropes in Victoria Oak Bay?! What a great time we'd have!
Dixie: I'm hoping that this 'life of its own' that's been created here is going to die soon--it seems that there is alot of panic surrounding this unbelievable 'life'!!
Michael: You and me BOTH! I don't think that's being cynical at all--very realistic, if you ask me! I'm still waiting for my bail out money too--granted, I'm certainly not holding my breath!
Gabe: I am sure that this is where it all started--or it could be from fear since we just lost our Wachovia last year. Who knows but, I'm sure the City Council and officials are doing their best to work this out. No one wants to see this happen here. We've had enough bad luck during this recession here!
Loreena: And you didn't send her my way?!! I hope, for her sake too, that this rumor just dies and never comes to fruition!
Don: Well, thank you--and you're right, they did receive a large chunk of bail-out $$.
Bill: In my opinion, there IS none! They say that the CEO will be hired from NY but, no one knows if he will plan to move the company. The entire Board of Directors are currently located out of Charlotte (at least that's what has been publicized) and everyone's fear is that they'll all make the decision to move. I don't see it as a viable alternative--especially in this economic climate!
Deb: Right on! We shall see!
Gary: REALLY! This is SUCH an awesome place to live, work and play--why would anyone want to move an entire business?!
Missy: My point exactly! We have an area that we call 'Little New York' because so many of the NY relocation clients select this area to reside when they leave NY. They ALL say that they can't BELIEVE the difference in the cost of living and the taxes here!
Dorie: I always agree with Gary--and I'm holding onto this comment too!! LOL I can't fathom that they'd make such a bad business move but, then again, banks are emerging from a multitude of bad moves that caused this recession!!