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New York loses $1 trillion in Wall Street

business as firms flee the city: report
By Shannon Thaler August 21, 2023 4:45pm Updated

A giant, sucking sound is coming out of Wall Street — and

More On: it’s siphoning staggering sums of money out of the Big Apple The ultimate Amazon back-to-school
wall street while handing business to Florida and other states farther edit: Deals on supplies, clothes,
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Icahn Capital Management — headed by billionaire
corporate raider Carl Icahn — is among the most prominent
firms to decamp to the Sunshine State. In August 2020, the firm ditched his posh Manhattan digs atop Columnists
Fifth Avenue’s General Motors Building in favor of a 14-story office complex in a Miami suburb.
Steve Cuozzo
Icahn’s firm, which manages $22.2 billion in assets, now conducts business less than a mile away from
his mansion in Indian Creek Village.
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Meanwhile, hedge-fund tycoon Paul Singer’s Elliott Management — which commandeers a total of $59.2 Park Ave.
billion after shaking up investment targets including AT&T, Twitter and the government of Argentina —
moved its headquarters from Midtown Manhattan to West Palm Beach, Fla., in October 2020.
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Of 158 NY-based companies managing $993 billion in assets, 56 have decamped to Florida, including hedge fund tycoon
Paul Singer’s Elliott Management and closely-watched stock picker Cathie Wood’s ARK Investment Management.
Getty Images/iStockphoto
New York loses $1 trillion in Wall
Street business as fed-up firms flee
One year later, closely watched tech-stock guru Cathie Wood — famous for her bold, windfall bet on Elon the city: report
Musk’s car maker Tesla –moved her firm ARK Investment Management — and its $24.7 billion worth of
assets — to St. Petersburg, Fla.
4,665
In all, 56 of the New York firms have decamped to Florida, while most
of those remaining also headed to warmer states such as Texas and see also
the Carolinas, according to the report. New York isn’t the only major
loser, with California also having lost $1 trillion in financial assets
under management to Florida, Texas and other lower-cost states.

Other major losers to Florida include Chicago, which lost billionaire Formula One slashes Las Vegas
Ken Griffin’s giant hedge fund Citadel to Miami last year. Grand Prix fees after backlash from
clubs, restaurants: sources
‘Zombie’ buildings
The mass migration threatens a crippling economic blow: Last year, abandoned during
Wall Street accounted for 16% of all the economic activity in the city commercial real estate 3,948
‘apocalypse’
and 7.3% of economic activity statewide. The latter figure is the
highest in the nation by far, towering above the national average of just
1.7%, according to an October report by New York State Comptroller
Thomas DiNapoli .

Likewise, the exodus has grave tax implications for the city and state. Last year, financial firms paid $5.4
billion in New York taxes and accounted for nearly a quarter of all personal income tax collections,
according to the report. Facebook users have only days left to
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According to New York State Comptroller Thomas DiNapoli’s latest figures on the securities industry, Wall Street bonuses report
could slump by as much as 45%. The dip doesn’t spell good news for the state, which relies on personal income taxes.
Sipa USA via AP
See All
Tax revenue from the industry this year is headed for a “significant decline,” the report warned. it also
noted that New York’s share of financial-industry jobs was 17.6% in 2022 — down by nearly half from a
third in 1990 — and noted that “jobs have shifted to lower-cost regions.” Video
High-profile examples include Goldman Sachs, which has been heavily investing in Dallas, where the cost
of living is about 40% cheaper than it is in New York, according to Salary.com.

Goldman Sachs is in the process of erecting a three-building campus just outside downtown Dallas,
according to documents filed with Dallas’ city plan commission obtained by The Dallas Morning News.

The nearly $500 million, 815,000-square-foot development was made possible with the $18 million in tax
breaks the city of Dallas granted the Wall Street bank last July in exchange for bringing as many as 5,000
jobs into the city. Itwas my 6-year-old's 1st flight —
here's how JetBlue went above and
beyond
When the campus opens in 2027, the staffers will enjoy underground parking, a first-floor retail space, a
1.5-acre urban park, a hotel and residential towers, the filings showed.

Other prominent firms moving their headquarters from New York to Sun Belt refuge states: Icahn Enterprises and
AllianceBernstein. Meanwhile, Goldman Sachs is betting big on Dallas.
REUTERS

A spokesperson for Goldman said the bank has no plans to abandon its downtown Manhattan
headquarters at 200 West St.

Mammoth money manager AllianceBernstein moved its headquarters from New York to Nashville in May
2022 — taking a staggering $685 billion in managed assets with it. In the process, the mega-firm also
relocated 1,000 jobs in a shift that Bloomberg reported at the time would save the global asset
management firm $80 million a year.

The Nashville move was driven by hard numbers that show the massive savings that can come with an
exit from New York: According to Statista, companies spend a median of $94 per square foot for corporate
space in Manhattan, while offices in Nashville run for a median of $31 per square foot.

Altogether, the cost of living in Music City is nearly 42% cheaper in Nashville than it is in New York City,
according to Salary.com ‘s cost-of-living comparison tool.

Representatives for the company did not immediately respond to The Post’s request for comment.

AllianceBernstein moved its headquarters from New York to Nashville in May 2022, relocating 1,000 jobs in an effort to
save the global asset management firm $80 million a year.
AB Corporate/YouTube

Charles Schwab, which oversees more than $7 trillion in assets, officially re-designated its headquarters
from San Francisco to Westlake, Texas, outside of Dallas after it acquired TD Ameritrade in 2020.

The 1.1 million-square-foot campus was over three years and $100 million in the making, with amenities
that include a “café, training center, multiple collaboration spaces, employee services and more,”
according to the investment firm’s website .

536 What do you think? Post a comment.

Wells Fargo — which has assets under management totaling $603 billion — is also spending nine figures
to develop an 850,000 square-foot North Texas hub.

After receiving more than $30 million in tax breaks, Wells Fargo is spending $500 million to construct two
buildings and a 4,000-space garage that will play host to over 3,000 workers by the end of 2026,
Bloomberg reported.

Filed under carl icahn Commercial Real Estate commercial rents comptroller dallas
florida nashville new york city office of the comptroller rent taxes wall street
8/21/23

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Weasel1
14 hours ago
I have been predicting this for years. In good times there was little drain. Now, inflation and a
ity that can no longer afford to give real estate tax benefits is finding out about the folly of
ways. First the big boys snd big spenders. Then the smaller service businesses ,
the... See more
Reply 335 Share
7 replies

Brooklynite76
14 hours ago
All the noble and virtuous intentions of our largely Democratic cities are contingent on
and people with wealth wanting to live there and spend money there.

I don’t know why we keep forgetting this and/or dismissing it.

Reply 261 Share

5 replies

Cronkyte
14 hours ago
The technological revolution meant there were few reasons to stay; New York City, as it now
provides many reasons to leave.
Reply 176 Share
1 reply

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