(TJV) A new report by Bloomberg finds that an incredible 160 companies have moved their headquarters out of New York in general and New York City in particular for a loss of $1 trillion in assets as they moved southward.
Most of the companies from New York are moving to Florida. But they are also moving to Tennessee and Texas and even to Connecticut and New Jersey.
Per Bloomberg, which also reported on similar loses for California:
The moves, often born out of a desire for lower taxes, warmer weather and cheaper mansions, have pushed the industry’s footprint into parts of the US that previously didn’t have much of a finance presence beyond regional banks. It’s upending the economies of the hot new destinations, spurring plenty of angst in the places left behind, and creating new opportunities for investment professionals outside historic financial centers.
“The Sun Belt is continuing to change — no longer just a place of traditional industries like oil and gas, no longer just focused on tourism, or just focusing on the retirement community,” said Amy Liu, the interim president of the Brookings Institution and a researcher on urban policy. “These pandemic moves sort of reinforce that the major metros in these states are certainly becoming a destination for new industries.”
From the start of 2020 through the end of March 2023, more than 370 investment companies — about 2.5% of the US total, and managing $2.7 trillion in assets — moved their headquarters to a new state. The vast majority of the migration was out of high-cost-of-living locales in the Northeast and on the West Coast and into Florida, Texas and other Sun Belt refuges. North Carolina and Tennessee each added more than $600 billion in assets, mostly from just two relocations: AllianceBernstein to Nashville from New York in 2021 and Allspring Global Investment to Charlotte from San Francisco last year.
NY Post pointed out:
The mass migration threatens a crippling economic blow: Last year, Wall Street accounted for 16% of all the economic activity in the city 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.
