Goldman considers joining the financial migration to Florida
Goldman Sachs is one of Wall Street’s best-known firms, its identity indelibly tied to New York. Yet it may move at least some parts of a major division to Florida, with costs and the pandemic in mind.
DealBook has confirmed that the bank has explored moving some of its asset management unit, following a Bloomberg report that executives had scouted office locations and spoken with officials in Florida. It’s not clear how much of the business, which generates about $8 billion in annual revenue, might move. The firm has reportedly looked at areas around Miami, but may ultimately choose to move elsewhere (or not at all).
Goldman already bases some operations outside of New York: It has been building up its investor relations team in Dallas, while its Marcus consumer-lending division is in Salt Lake City. A spokesman for the bank told DealBook that it is “executing on the strategy of locating more jobs in high value locations throughout the U.S.,” but it has “no specific plans to announce at this time.”
Saving money is a major factor. In January, Goldman identified its real estate footprint as a target in its $1.3 billion cost-cutting campaign. Since then, remote working during the pandemic has persuaded many companies to shift operations to lower-cost locations. A similar shift is afoot for firms in Silicon Valley, with Hewlett-Packard Enterprise moving to Houston and Palantir to Denver, among others.
Florida is particularly popular for the financial industry. Elliott Management plans to move its headquarters from Midtown Manhattan to West Palm Beach, and Citadel and Blackstone are also expanding in the state. The lifestyle appeals to some financial high-rollers, who can keep East Coast hours while benefiting from warmer weather, palatial homes near the beach and no state income tax.
Goldman’s potential move may become a political talking point, as New York City faces a budget shortfall because of the pandemic. Any potential loss in taxes is sure to play a part in the mayoral race that kicks into high gear next year.
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