A gang of Wall Street executives, bankers and fund managers leave New York for Florida, embracing the Sunshine State over the New York metropolitan city, as the coronavirus pandemic has eliminated many benefits from working from a financial center world.
Since legions of financial industry employees began working from home in March, Florida’s warm weather, low taxes, affordable space, and quick, easy flights back to New York, when needed, have elevated its status.
About 30 large financial companies are “suffering tires” in South Florida, said Kelly Smallridge, who runs an economic development agency in Palm Beach County. A handful of them are seriously concerned about changing staff there, he said.
Companies such as Elliott Management, Citadel and Moelis & Co are among the latest to say they will open satellite offices or allow their financial institutions to be established in Florida, executives have reported.
Goldman Sachs Group Inc. is also looking to relocate some asset management personnel, people familiar with the matter said.
In the past, Wall Street executives rejected the idea of settling in Florida because of concerns about schools, culture, and networking opportunities.
Much of this has been removed as work and distance learning have taken over New York, while restaurants, museums and other places remain closed due to blocking measures to prevent the virus from spreading. .
This has made Florida’s relaxed lifestyle and business-friendly practices more appealing, bankers and investment professionals said.
Florida is part of a broader trend, with large financial companies moving staff from expensive cities like New York and San Francisco to low-cost centers in U.S. states like Ohio, Tennessee, Texas and Utah.
For 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 year-round is another benefit, along with the absence of state income taxes. Houses and apartments tend to cost less and commercial rents are about half the price of Manhattan in places like Palm Beach County.
“I love it here and I try to get some friends to move here,” said Kevin Couper, senior vice president of Wealthspire Advisors, who moved to South Florida six months ago. “People are able to live here.”
Couper’s vision reflects 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 prefer to be close to the beach.
INCREASE IN NUMBER OF PATIENTS
Florida Gov. Ron DeSantis has prioritized the state’s economy over strict coronavirus protections. In September, he declared Florida open to business, banning local governments from limiting capacity in restaurants, even as many other states restricted indoor food.
Florida is one of 13 states without a mask mandate.
Coronavirus hospitalizations in Florida rose 32 percent to 5,634 people Wednesday from 4,280 Dec. 1, according to a Reuters account. This is the fifth highest position in the country, behind California, Texas, New York and Pennsylvania.
DeSantis supporters argue that his approach has saved jobs and helped Florida businesses.
Couper and others said they take the pandemic seriously, but that people should be allowed to make their own decisions about wearing masks and eating out.
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, has worked from Florida during the pandemic.
Citadel, the hedge fund, expects to open an office in Miami next year. Florida native Ken Griffin tested the state when he moved some traders from Citadel Securities, his separate e-commerce 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 personnel near Miami, he said.
Goldman Sachs’ asset management arm has been studying South Florida, sources said. The bank has no specific plans to announce it, but is looking 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 was happy that the best distributors would work there if they preferred.
“The pandemic has taken essentially five years of a slow process and accelerated it,” said Alan Johnson, who works with chief financial officers as head of consulting firm Johnson Associates. “Companies realize you don’t have to be in the middle of Manhattan and employees agree with that.”
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