At least 20 finance and tech companies are already poised to leave the Big Apple for the Sunshine State, Kathyrn Wylde, CEO of the business-backed Partnership for New York City, told the New York Post.
Among those considering a move to Florida are JetBlue Airways, which has been headquartered in Queens since its founding two decades ago, and Goldman Sachs, which maintains its head office at an upscale address in Lower Manhattan.
After surviving a year of pandemic fears, harsh restrictions on social activities, and soaring crime, business leaders say the massive proposed tax hike could be the final straw for many companies.
Goldman Sachs, which maintains its head office at an upscale address in Lower Manhattan (above), is considering moving its asset management division to Florida
‘The Legislature’s proposals will move us in the opposite direction by driving away the businesses and tax base required to do that,’ Real Estate Board of New York President James Whelan told the Post.
‘We have been down this road before. In the 1960s and 1970s, such policies ultimately discouraged investment in New York City and led to a diminished tax base and fewer resources for the delivery of government services,’ he added.
‘The results were devastating – two decades of fiscal problems along with rising crime and unacceptable quality of life.’
Sunny Florida, which has no state income tax, has emerged as an attractive alternative, and many top hedge funders have already fled for the southern state.
Billionaire Carl Icahn recently decided to relocate his asset-management firm from Manhattan to Florida, and Ken Griffin’s Citadel Group reportedly plans to open an office in Miami next year.
Paul Singer is also moving the headquarters of his $41 billion hedge fund, Elliott Management, from Midtown Manhattan to West Palm Beach.
Blackstone – an NYC-based private equity alternative investment management firm with assets of $34 billion – also announced it was going to open an office in Miami.
The sun rises behind the skyline of lower Manhattan and One World Trade Center on the spring equinox in New York City on Saturday. Business continue to flee the city
Palm Beach’s real estate market remains hot in the pandemic, as wealthy New Yorkers flee to Florida and Wall Street firms expand operations in Florida
Both houses of New York’s state legislature have proposed budgets that include nearly $7 billion in new and increased taxes on businesses and the rich.
‘New York State will be the most-taxed state in the country’ if the proposals pass, Wylde lamented to the Post.
Technology jobs, many of which have been done as remote work for the past year now, are particularly vulnerable to relocation out of the expensive city.
‘Technology is our most important job creator in New York right now, and they’re already making decisions about not staying in New York,’ Wylde said, declining to specify which companies are planning moves.
Earlier this week, a leaked JetBlue memo revealed that the company is considering whether to stay in New York, where it was founded two decades ago, or move its headquarters to Florida.
A spokesperson for the airline confirmed to DailyMail.com that it is looking into its real estate options.
The airline said in a statement that its current lease expires in July 2023 and it is reviewing its options ‘and considering how our space requirements may evolve in a hybrid work environment post-pandemic.’
JetBlue is considering leaving its Long Island City headquarters (above) and moving operations to existing facilities in Florida. A decision is expected later this year
JetBlue is considering expanding its existing Florida property portfolio including its Orlando training center (above) and Fort Lauderdale headquarters
The spokeswoman said that a decision is expected later this year. She said more than 1,300 employees work at the headquarters in Long Island City, across the East River from Manhattan.
The exodus: The big businesses leaving New York City
Several big businesses have announced plans or at least considerations to move their offices from New York City for the likes of Florida. Here’s who:
– Goldman Sachs
– Elliott Management
– JP Morgan Chase
JetBlue said it is exploring a number of options, including staying in its current headquarters, moving elsewhere in New York City, or shifting some New York-based jobs to existing JetBlue facilities in Florida.
The airline has a training center in Orlando and a travel-products subsidiary in Fort Lauderdale.
The airline said that no matter what it decides about the headquarters, it still plans to expand at all three New York City-area major airports.
Like other carriers, JetBlue has been hit hard by the pandemic. It lost nearly $1.4 billion last year, as revenue fell more than 63 percent compared with 2019.
In December, Goldman Sachs Group announced it was considering moving its asset management division to South Florida.
Jamie Dimon – the CEO of JP Morgan Chase – has also said he was open to moving the $473 billion company’s headquarters down south to Miami.
Miami’s Mayor Francis X. Suarez has urged the Big Apple’s financial giants to leave Wall Street and relocate to Miami.
New York has one of the highest tax rates – a rate that may well increase further.
Governor Andrew Cuomo said last week a tax hike is still ‘on the table’ in New York even with the $23.5 billion from Joe Biden ‘s COVID-19 relief bill pouring into the state.