The California "Exodus" Myth: Why In-N-Out Just Proved the Doubters Wrong

​If you’ve spent five minutes on social media or watching the national news lately, you’ve heard the same tired drumbeat: “Everyone is leaving California.” Headlines have been desperate to paint a picture of a hollowed-out Golden State, claiming that iconic brands are packing their bags for Tennessee, Texas, and Florida.

But as I always say in real estate development: Look at the leases, not the headlines.

Last year, the rumor mill went into overdrive when news broke that In-N-Out Burger was opening a massive office in Franklin, Tennessee. The narrative was instant: “In-N-Out is moving its headquarters to Tennessee!” It was a perfect "gotcha" story for those rooting against California.

Except, it wasn't true.

The Reality: A Return to Roots

Last week, the real story finally came out, and it’s a massive win for the Los Angeles office market. In-N-Out didn't just stay in California—they doubled down on it.

The burger giant just signed one of the largest office deals in LA County over the past year, leasing a 98,000-square-foot building in San Dimas. This isn't just an "office"; it’s the centerpiece of a strategic move to bring their corporate operations back to their original "backyard" near Baldwin Park, where the company was founded in 1948.

Why California Still Wins

Why would a company like In-N-Out—whose CEO, Lynsi Snyder, has been candid about the challenges of doing business in CA—choose to sign a massive, long-term lease in Los Angeles? It comes down to three things:

The Talent Pool: You simply cannot replicate the talent density of Los Angeles, San Francisco, or New York in Nashville or Austin. For a brand that scales on quality and culture, the deep bench of professional services and creative talent in SoCal is irreplaceable.

Regional Expansion vs. Corporate Relocation: Smart companies expand; they don't always "flee." The Tennessee office is an Eastern Territory hub to support new restaurants in the Southeast. It’s about growth, not an exit.

Real Estate Fundamentals: While the broader LA office market has faced headwinds, submarkets like the Eastern San Gabriel Valley are thriving. With vacancy rates at a tight 5.9%, these areas prove that when the location and the talent are right, the demand is relentless.

Stop Buying the Hype

The media loves a "California Exodus" story because it generates clicks. But for every company that moves a back-office function to a lower-cost state, there is an In-N-Out, a tech giant, or a creative powerhouse that realizes you can't build a global empire without a footprint in the world's most innovative economies.

California isn't over. It's evolving. And as In-N-Out just showed us, the best way to move forward is often by returning to the roots that made you great in the first place.