Prices for land and buildings may seem as if they are the main reason, but the determining factor in business decisions to move away from Palma is the traffic congestion.
Logistics and technology companies are among those to have moved their operations away from the capital, and the municipality benefiting the most is Inca.
The mayor, Virgilio Moreno, says there has been an ongoing analysis of Inca's economic and industrial strengths and weaknesses since 2015. Key strengths are location and accessibility to public transport.
"This is something we have been working on with investors, creating a true hub of public transport in Mallorca. We have a new station, the Inca Hospital station, and a bus interchange, closely linked to the new business growth areas. We are improving connections for our residents while also promoting the town's economic and industrial growth.
"With the new industrial estate we will have 180,000 square metres available for companies and industries. What we are creating is a centre for business and economic growth. Unfortunately we no longer have the shoe factories, but we do have large companies interested in investing in Inca, especially those in the logistics and agri-food sectors."
For now, Inca is something of an exception. In Santa Maria, along the same corridor from Palma to Sa Pobla and Alcudia, there has been a slight increase in demand, but this is nothing like the boom occurring in Inca. Manacor is an administrative centre like Inca and known for its industry, but the mayor, Miquel Oliver, says there isn't a similar process to that of Inca.
Prices can't be ignored. On the property website Idealista, industrial sites in Inca are offered for sale at around 650 euros per square metre. On the Son Castelló industrial estate in Palma they are up to 3,000 euros.
"Prices are a question of supply and demand and they are beginning to rise in Inca. Many companies are buying with an eye to the future," explains Moreno. The one-time leather town has experienced the decline of its shoe industry over the years, but the old factories are now an investment opportunity for new business models.
Fabrica Ramis has become a business, coworking and conference centre. Investors have acquired the old Farrutx and Can Beltrán factories. The Fluxà family that owns the Camper footwear company is planning the conversion of its original factory close to the railway station.
Tomeu Guisscasre is one of the partners in technology group WDNA. Although it is maintaining its headquarters on the ParcBit technology park in Palma, it bought Can Beltrán two years ago. "We saw the opportunity to buy an industrial facility in a heritage site and we decided to take the step. The price of industrial land is cheaper, while Inca is a strategic location in terms of communication. Our factory is 50 metres from the railway station."
The traffic in Palma was a very important factor. "One of the handicaps of ParcBit is that it is isolated in terms of transport; the traffic jams are horrific. Many of our employees are from outside Palma and can't avoid the jams at rush hours."