A lot of Wall Street executives, bankers and fund managers are leaving New York for Florida, embracing the state of Sunshine over metropolitan New York, as the coronavirus pandemic has eliminated many of the benefits of working from a global financial hub.
Ever since legions of financial industry employees started working from home in March, Florida’s warm weather, low taxes, accessible space and fast and easy flights back to New York, when needed, have raised their status.
About 30 major financial firms are “hitting” South Florida, said Kelly Smallridge, who runs an economic development agency in Palm Beach County. A handful of them are serious about moving staff there, she said.
Companies, including Elliott Management, Citadel and Moelis & Co, are among the latest to say they will open satellite offices there or allow money makers to be based in Florida, executives said.
Goldman Sachs Group Inc. is also looking at moving some asset management employees there, said people familiar with the matter.
In the past, Wall Street principals have rejected the idea of locating in Florida because of concerns about schools, culture, and networking opportunities.
Much of this has been eliminated because work and distance learning have taken over New York, while restaurants, museums and other places remain almost closed due to blockade measures to prevent the virus from spreading.
This has made Florida’s relaxed lifestyle and business-friendly practices more attractive, bankers and investment professionals said.
Florida is part of a broader trend, with large financial companies moving staff from expensive cities such as New York and San Francisco to lower-cost hubs in the United States, such as Ohio, Tennessee, Texas and Utah. .
To many New Yorkers, Florida seems closer culturally and physically than other states. It is in the same time zone and has more Big Apple expatriates than could be found in Salt Lake City or Nashville, sources said.
Outdoor dining throughout the year is another plus, along with the absence of state income tax. Homes and apartments generally cost less, and commercial rents are about half the price of Manhattan in places like Palm Beach County.
“I absolutely love it here and I’m trying to make some friends move 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 reflects what many of his Wall Street colleagues say: If they can’t be in Manhattan’s skyscrapers and enjoy theater, concerts and restaurants, they’d rather be close to the beach.
The number of patients is increasing
Florida Gov. Ron DeSantis has prioritized the state’s economy over strict coronavirus protections. In September, he declared Florida open for business, banning local governments from limiting capacity to restaurants, even though many other states have restricted domestic dining.
Florida is one of 13 states without a mask.
Florida coronavirus hospitalizations rose 32 percent Wednesday to 5,634 from 4,280 on Dec. 1, according to a Reuters report. It is the fifth largest in the country, behind California, Texas, New York and Pennsylvania.
DeSantis supporters say his approach has saved jobs and helped Florida companies.
Couper and others said they took the pandemic seriously, but that people should be allowed to make their own choices when it comes to wearing masks and eating.
Elliott Management hedge fund, which oversees $ 41 billion, says it plans to open an office in West Palm Beach next year. His co-executive, Jonathan Pollock, worked in Florida during the pandemic.
Citadel, the hedge fund, expects to open an office in Miami next year. Founder Ken Griffin, originally from Florida, put the state to the test when he moved several traders from Citadel Securities, his separate electronic trading business, 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 technology employees near Miami, he said.
Goldman Sachs’ asset management arm is looking to South Florida, sources said. The bank has no specific plans to announce, but is trying to place more jobs in “high-value” locations across 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 in Miami or Palm Beach for years.
Although Moelis has no plans to open an office in Florida, CEO Ken Moelis told Bloomberg TV that he is happy to have top dealers working from there if he prefers to do so.
“The pandemic lasted essentially five years in a slow process and accelerated it,” said Alan Johnson, who works with CFOs as head of consulting firm Johnson Associates. “Companies realize you don’t have to be in Midtown Manhattan, and employees are fine with that.”
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