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158 financial firms with assets under management worth $1 trillion have left New York City, here's why
The companies have relocated their headquarters from New York City to Southern US states like Florida.
158 financial firms with assets under management close to $1 trillion, have moved out of New York City since the end of 2019. The companies have relocated their headquarters from New York City to Southern US states like Florida.
According to a report by New York Post, the move has happened in the wake of increased crime, stiff taxes and high cost of living in the Big Apple. Due to the move, thousands of high-paid employees have also been relocated.
The most well recognised firm which has left New York, is Icahn Capital Management, headed by billionaire Carl Icahn. The firm made the move in August 2020 from Fifth Avenue’s General Motors Building to 14-storey office complex in Miami. The new office complex in Indian Creek Village is within a mile way from Icahn's mansion.
Another prominent company which left New York, is hedge fund tycoon Paul Singer’s Elliott Management. It relocated its headquarters from Midtown Manhattan to West Palm Beach, Florida in October 2020.
Financial firm ARK Investment Management has made the move to St. Petersburg in Florida.
Of the 158 companies which were based in New York, 56 moved to Florida. Many have shifted to states like Texas, North Carolina and South Carolina.
The report says that the exodus is leading to big tax loss for New York City and the state. It highlights that in 2022, financial firms paid $5.4 billion in New York taxes which was almost a quarter of all personal income tax collections.
Meanwhile, Goldman Sachs is getting a three-building campus constructed just outside downtown Dallas. The campus will open in 2027. However, a spokesperson of the bank has said that the company won't shift from its current headquarters in downtown Manhattan.
