A bevy of Wall Street executives, bankers and fund managers are leaving New York for Florida and embracing the Sunshine State over the metropolis of New York as the coronavirus pandemic has eliminated many of the benefits of operating from a global financial center.
Ever since legions of financial industry workers began working from home in March, Florida’s warm weather, low taxes, affordable space, and fast, convenient flights back to New York, when needed, have elevated the status.
About 30 major financial firms in South Florida are “kicking the ties,” said Kelly Smallridge, who heads an economic development agency in Palm Beach County. A handful of them are serious about moving staff there, she said.
Companies such as Elliott Management, Citadel and Moelis & Co are among the latest to say they will open satellite offices there or have their money producers set up in Florida, executives said.
Goldman Sachs Group Inc is also considering moving some asset managers there, say people familiar with the case.
In the past, Wall Street executives have rejected the idea of settling in Florida due to concerns about schools, culture, and networking opportunities.
Much of this has been eliminated as remote work and learning has taken over New York, while restaurants, museums, and other venues remain nearly closed due to lockdown measures to prevent the virus from spreading.
That has made Florida’s laid-back lifestyle and business-friendly practices more attractive, according to bankers and investment professionals.
Florida is part of a broader trend of large financial firms moving staff from expensive cities like New York and San Francisco to cheaper hubs in US states like Ohio, Tennessee, Texas and Utah.
For many New Yorkers, Florida seems closer culturally and physically than other states. It’s located in the same time zone and has more Big Apple expats than one could find in Salt Lake City or Nashville, sources said.
Year-round open-air dining is another plus, along with the lack of income tax. Homes and condos generally cost less, and commercial rents are about half the price in Manhattan in places like Palm Beach County.
“I absolutely love it here and am trying to get some friends over here,” said Kevin Couper, senior vice president at Wealthspire Advisors, who moved to South Florida six months ago. “People can live their lives down here.”
Couper’s opinion echoes what many of his fellow Wall Street executives say: If they can’t be in Manhattan’s skyscraper offices and enjoy theater, concerts, and restaurants, they’d rather be close to the beach.
RISE IN THE NUMBER OF PATIENTS
Florida Governor Ron DeSantis has prioritized the state’s economy over strict protection against the coronavirus. In September, he declared Florida open to business, forbidding local governments to limit capacity in restaurants, even as many other states restricted indoor dining.
Florida is one of 13 states without a mask mandate.
According to a report from Reuters, the number of hospital admissions for coronavirus in Florida rose 32% to 5,634 people on Wednesday from 4,280 on Dec. 1. It is the fifth highest in the country, after California, Texas, New York and Pennsylvania.
DeSantis supporters claim his approach saved jobs and helped Florida businesses.
Couper and others said they are serious about the pandemic, but that people should be able to make their own choices about wearing masks and eating out.
Hedge fund Elliott Management, which oversees $ 41 billion, says it plans to open an office in West Palm Beach next year. Its co-chief executive, Jonathan Pollock, worked from Florida during the pandemic.
Citadel, the hedge fund, expects to open an office in Miami next year. Florida founder Ken Griffin put the state to the test when he moved some traders of Citadel Securities, his separate electronic trading company, from New York and Chicago to the Four Seasons hotel in Palm Beach.
Blackstone Group Inc also plans to open an office for hundreds of back office employees in the Miami area.
Goldman Sachs’ wealth management division has looked to South Florida, sources said. The bank has no specific plans to announce, but wants to place more jobs in “high-quality” locations around the country, a spokesman said.
Deutsche Bank Group AG and JPMorgan Chase & Co have long had offices in Jacksonville, while many hedge funds have been based around Miami or Palm Beach for years.
While Moelis has no plans to open an office in Florida, CEO Ken Moelis told Bloomberg TV that he was happy that top deal makers would work there if they preferred.
“The pandemic took essentially five years of a slow process and accelerated it,” said Alan Johnson, who is working with finance CEOs as head of consulting firm Johnson Associates. “Companies realize you don’t have to be in Midtown Manhattan, and the employees are fine with that.”
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