On Thursday February 21st, officials of Keurig Dr. Pepper have announced their decision to relocate its Texas headquarters currently located in Plano, Texas, to The Star in Frisco, the official home of the Dallas Cowboys. Over the last few years, Frisco has become a hot spot choice for many top-tier corporations to relocate to or create new facilities. However, Keurig Dr. Pepper will be Frisco’s first Fortune 500 company, adding to the prestige of this already luxurious and fast-growing community.
“We are thrilled to see the business community at The Star continue to grow with the addition of Keurig Dr. Pepper,” said Jerry Jones, owner of the Dallas Cowboys, in a news release from Keurig Dr. Pepper.
The new Texas headquarters will be a 350,000 sq. ft. build-to-suit leased facility and is expected to be ready by 2021. This new home will serve as one of two of Keurig Dr. Pepper’s headquarters with the other located in Burlington, Massachusetts. This news comes just a year after Dr. Pepper Snapple Group and Keurig Green Mountain announced their merger with an estimated equity value of $18.9 billion, recording as the world’s largest M&A soft drink transaction ever. The Frisco Economic Development Corporation’s Board of Directors approved the deal along with an incentive package tied to performance criteria, including:
- Executing a 16-year lease for at least 320,000 sq. ft. within Frisco
- Causing $47.5 million in real property improvements and Business Personal Property at their new facility
- After their initial relocation of their 1,100 employees from Plano, they have the ability to expand their workforce by approximately 400 at the new location
- The opportunity to earn incentives for each job up to a total of 1,530 full-time employees at the new location with a maximum incentive of $14.5 million, if all jobs are realized.
“Keurig Dr. Pepper’s decision to locate here is a huge win for the city and residents of Frisco,” said Ron Patterson, president of Frisco Economic Development Corporation. “This move will drive job growth opportunities, as well as create interest from other corporations across the nation seeking to expand and relocate their operations. As more companies move to Frisco, our residents and business community will continue to benefit.”
It seems as if the new group felt that with the merger completed it was time to start fresh in a new location, and what better spot than The Star?
“We are excited to upgrade our Texas co-headquarters location to support the needs of our vibrant business, including enhanced technology capabilities and space to increase collaboration,” said Bob Gamgort, Chairman and CEO of Keurig Dr. Pepper. “The new location at The Star in Frisco will provide a state-of-the-art work environment and exciting amenities that will energize our employees and enable us to attract top talent in the area.”
Dr. Pepper already has close ties to Texas and more specifically Frisco. When The Star was announced, Dr. Pepper was noted as one of the major sponsors for the Cowboys’ new headquarters. Up until early January of this year, Dr. Pepper owned naming rights to the Dr. Pepper arena which is a multipurpose arena, home to the Dallas Mavericks G League affiliate, Texas Legends, and the executive offices and practice facility of the Dallas Stars. Dr. Pepper also owns naming rights to the Frisco RoughRiders Minor League Baseball team along with exclusive non-alcoholic beverage rights to the park. All things considered, moving Keurig Dr. Pepper’s co-headquarters to Frisco was a no-brainer.
The Country’s Newest Corporate Hot Spot
The Keurig Dr. Pepper news follows the PGA (Professional Golfers’ Association) of America’s announcement in December to create a massive 600-acre, mixed-use development in Frisco, Texas as their new headquarters. The PGA’s move is a much larger move than Keurig Dr. Pepper’s due to their current headquarters residing in Florida, but the moves are equally impactful for the city of Frisco’s future.
Frisco has increasingly become more attractive of a location for companies and corporations to relocate their offices to. With the Dallas Cowboys placing their headquarters there along with the Dallas Stars and Frisco RoughRiders, the introduction of both PGA and Keurig Dr. Pepper may entice more corporations to relocate to Money Magazine’s Best Place to Live in America.
“This is an exciting day for the City of Frisco,” said Frisco Mayor Jeff Cheney. “Having this Fortune 500 company located in Frisco will continue to strengthen the city’s position as one of the top corporate relocation destinations in the United States. With this move, Keurig Dr. Pepper will have a direct impact on our city’s corporate landscape for many years to come.”
Mayor Cheney couldn’t be more accurate. Adding a corporation with such name recognition and commercial success to an already booming local economy, Frisco is bound to see a great deal of changes in the years to come, all for the better. The site is set to break ground before August 30th and must be completed within 24 months. It should be set to open August of 2021.