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Wednesday, February 8, 2023

NYC Wealth Exodus Drives Billionaire’s Guess on South Florida Growth

(Bloomberg) — Billionaire Stephen Ross, founding father of the agency that developed Manhattan’s Hudson Yards, is pushing deeper into South Florida in a guess that wealth will proceed migrating from the Northeast.

Associated Cos. is in search of alternatives for actual property tasks outdoors of West Palm Seaside and Miami, the place the agency has already established a presence, Ross mentioned in an interview. 

“Individuals are trying from the Northeast and relocating for jobs — not retirement — and firms are trying” for places of work, Ross mentioned. “It’s tax points, and there’s the safety points. There’s simply the convenience of dwelling.”

Prior to now two years, main know-how, finance and regulation corporations have moved or expanded to South Florida, drawn by the decrease taxes and hotter climate. Ken Griffin’s Citadel is relocating its headquarters to Miami from Chicago, whereas firms together with Apollo World Administration Inc. and Blackstone Inc. have taken area within the area. 

Learn extra: Wall Road South Will get Greatest Win in Griffin’s Grand Miami Plan

One among Associated’s mixed-use tasks in West Palm Seaside, dubbed The Sq., has attracted the likes of Goldman Sachs Group Inc. and Steve Cohen’s Point72 Asset Administration. Different monetary firms have signed leases at One Flagler, additionally in West Palm and set to be prepared in 2024. Final yr, Associated unveiled plans to construct one of many tallest skyscrapers in Miami. 

In the meantime, cities akin to New York and San Francisco are combating vacancies and dwindling demand for places of work. In Manhattan, Associated is pitching a on line casino resort for the second section of its $25 billion Hudson Yards challenge, on a web site as soon as slated for places of work and housing. 

“New York will proceed to develop, nevertheless it has its challenges, and lots of people who don’t should be there are trying to not be there,” Ross mentioned. “It’s altering, it’s getting youthful, the older individuals are shifting out, the wealthier individuals are shifting out.”

Nonetheless, Ross acknowledged that youthful employees are nonetheless largely interested in huge cities like New York. 

“Now we have enormous investments, we’re nonetheless doing great developments in New York,” he mentioned. “However I feel Florida goes to seize an terrible lot of individuals.”

To contact the authors of this story:

Natalie Wong in New York at [email protected]

Felipe Marques in Miami at [email protected]

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