Wall Street executives, bankers and fund managers are leaving New York for Florida, embracing Sunshine State over metropolitan New York because the coronavirus epidemic has taken away many of the benefits of working from a global financial center.
As parties in the finance industry began working from home in March, Florida’s cozy climate, low taxes, affordable space and fast, easy flights, when needed, improved its position.
Kelly Smolridge, who runs the Economic Development Agency in Palm Beach County, said about 30 large financial companies in South Florida are kicking tires. Some of those passengers are serious about evacuating staff there, he said.
Companies including Elliott Management, Citadel and Mollis & Co recently said they would open satellite office fees there or allow their money makers to stay in Florida, officials said.
Goldam Sachs Group Inc. is also considering moving some asset management staff there, people familiar with the matter said.
In the past, Wall Street officials have rejected the idea of finding a place in Florida because of concerns about schools, culture and networking opportunities.
Many of them have been removed because of remote working and learning in New York, while restaurants, museums and other places are closed everywhere due to lockdown measures to prevent the spread of the virus.
That makes Florida’s back-to-back lifestyle and business-friendly dealings more attractive, bankers and investors said.
Florida is part of a broader trend, with large financial companies moving staff from expensive cities like New York and San Francisco to the center at low cost in U.S. states such as Ohio, Tennessee, Texas and Utah.
For many New Yorkers, Florida seems culturally and physically closer than other states. It’s in the same time zone and there are bigger Apple Pal foreigners than you can find in Salt Lake City or Nashville, the sources said.
The year-round open-air meal is another plus with the absence of state income tax. Homes and ments apartments are generally cheaper, and commercial rentals in places like Palm Beach County are half the price of Manhattan.
“I absolutely love him here and I’m trying to get some friends down here,” said Kevin Cooper, senior vice president of Wealthspire Advisors, who moved to South Florida six months ago. “People are able to live their lives here.”
What many of his fellow officers on Wall Street say is reflected in Cooper’s point of view: if they can’t live in Manhattan’s skyscraper office fees and enjoy theaters, concerts and restaurants, they’ll be closer to the beach.
Increase in the number of patients
Florida Gov. Ron Desantis has prioritized the state’s economy over strict coronavirus defenses. In September, he declared Florida open for business, preventing local governments from limiting capacity in restaurants, as many other states have banned indoor dining.
Florida is one of 13 states without a mask order.
The number of people admitted to Florida’s coronavirus hospital rose to 5,634 on Wednesday, Dec. 1, from 4,280, up 32%, according to Reuters figures. It ranks fifth in the country behind California, Texas, New York and Pennsylvania.
Proponents of Descentis argue that his approach has saved jobs and helped Florida businesses.
Cooper and others said they take the epidemic seriously, but people should be allowed to make their own choices about wearing masks and eating.
Hedge fund Elliott Management, which oversees illion 41 billion overseas, says it plans to open a West Palm Beach office fee next year. Its co-chief executive, Jonathan Pollock, has worked from Florida during the epidemic.
Hedge fund Citadel expects to open Miami office fees next year. When founder Ken Griffin, a native of Florida, put the state to its test, he moved some of Citadel Securities traders from New York and Chicago to the Four Seasons Hotel in Palm Beach.
Blackstone Group Inc. also plans to open hundreds of back-office fees near Miami.
Goldm Sachs Asset Management Arm is looking toward South Florida, sources said. The bank has no specific plans to advertise, but is looking to offer more jobs in “high-value” locations across the country, a spokesman said.
Duchess Bank Group AG and JPMorgan Chase & Connie have long had office fees in Jacksonville, while many hedge funds have been based for years around Miami or Palm Beach.
Although Mollis has no plans to open an office in Florida, CEO Ken Mollis told Bloomberg TV that he would be happy to work there if he chooses the top dealmakers.
“The epidemic has essentially taken five years of a slow process and accelerated it,” said Alan Johnson, who works with the financial CEO as head of consulting firm Johnson Associates. “Companies realize you don’t have to live in Midtown Manhattan, and employees are okay with that.”
20 2020 th Thmson / Reuters. All rights reserved to us.
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