Goldman Sachs is considering moving its $8 billion asset management arm to Florida, according to a new report, signaling another potential blow to New York City’s role as the heart of the U.S. financial industry.
The company is weighing a number of options, including Palm Beach County and Fort Lauderdale, as well as Dallas, Tx., according to Bloomberg. The company is eyeing Florida’s tax advantages as a number of other investment companies have moved from New York to the South as the coronavirus pandemic has wreaked havoc on the city.
There is now the most empty office space in the city since right after 9/11.
In October, Bloomberg reported that the $41 billion hedge fund Elliott Management would move its headquarters from Manhattan to Florida. Similarly, Carl Icahn moved his operations to Florida last spring in search of tax advantages and warmer weather, according to the New York Post.
A representative for Goldman Sachs told Bloomberg it is “executing on the strategy of locating more jobs in high-value locations throughout the U.S.” but added that it has “no specific plans to announce at this time.”
The coronavirus, with the lockdowns and public health fear it has brought, has damaged New York’s economy as the pandemic has also shown that more work can be done remotely now than ever before, creating less need for expensive office space.
Yet the securities and trading industry is critical to the city’s economic wellbeing, having brought in 18 percent, or more than $15 billion, of collected state taxes and six percent of New York City taxes collected.
City officials have defended the city as the place to be, predicting it will bounce back once the pandemic ends.
“With all due respect to Florida, no place can compare to New York City’s concentration of talent, education, innovation and next-generation technology,” said Bill Neidhardt, press secretary to New York Mayor Bill de Blasio. “The city continues to see new expansions and investments from the leading industries and we expect more to come.”
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