One trillion dollars' worth of assets under control as 158 financial firms leave New York City

Over the period since the close of 2019, approximately 158 financial firms, collectively managing assets nearing $1 trillion, have opted to relocate their headquarters from New York City to Southern U.S. states, particularly Florida. This migration has been attributed to a confluence of factors such as escalating crime rates, burdensome taxes, and the high cost of living in the metropolis, as reported by the New York Post. The ripple effect of this transition has resulted in the relocation of thousands of well-compensated employees.

Among the notable departures is Icahn Capital Management, spearheaded by billionaire Carl Icahn, which executed the move in August 2020. Transitioning from the General Motors Building on Fifth Avenue to a 14-story office complex in Miami's Indian Creek Village, the strategic relocation positioned the firm in close proximity to Icahn's personal residence. Similarly, hedge fund powerhouse Elliott Management, under the leadership of Paul Singer, shifted its headquarters from Midtown Manhattan to West Palm Beach, Florida, in October 2020. ARK Investment Management also embraced change by moving to St. Petersburg, Florida.

Out of the 158 companies originally based in New York, 56 have chosen Florida as their new home, while others have dispersed to states like Texas, North Carolina, and South Carolina. The report underscores the significant tax implications for New York City and the state resulting from this corporate exodus. In 2022 alone, financial firms contributed $5.4 billion to New York's tax revenue, constituting nearly a quarter of all personal income tax collections. Meanwhile, Goldman Sachs is currently in the process of constructing a three-building campus just outside downtown Dallas, set to open in 2027. However, a spokesperson for the banking giant has clarified that despite this expansion, the company has no plans to relocate its headquarters from its current base in downtown Manhattan.