For Wall Street companies looking to move south, a new benchmark has been set up by Ken Griffin.
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Among the many big names with a new address are Point72 Asset Management and Goldman Sachs Group Inc., which have set up offices in a Related Cos. Building in West Palm Beach. Di Capital, owned by Dan Sundheim, leased office space in Coconut Grove, a trendy location in Miami. PE giant Apollo Global Management has locked a long-term office agreement at 701 Brickell Ave., across the Miami River.
53-year-old Griffin, the founder of Citadel, has upped everybody by promising to build a spotless office tower in Miami with developer Sterling Bay. The new office will serve as a Global headquarters for Citadel’s Market making and Hedge fund operations.
Though the process could take a few years as it involves building a new structure from the ground level along the waterfront along the business district in Miami, it displays a new commitment level from the giants of Wall Street. These corporations have gravitated toward South Florida’s lower state income tax and warm weather. The ambition of Citadel could also push other banks, hedge funds, and Private Equity Fund to strengthen their presence in this region.
In the meantime, Griffin has shifted to Miami with his family and raising prospects of spreading his $28.9 billion fortune in Florida, where he was born and brought up, the way he did for Chicago for years.
The market in South Florida has gained momentum in the last two years, with several industry leaders and employees relocating from places such as Chicago, New York, and San Francisco. Office leases have surged across West palm Beaches and Miami, pushing the rents up. This also led to demand for housing and schools in the location.
Citadel has booked office leases between 200,000 and 300,000 sq. ft in Miami, according to some persons who did not wish to be named as the matter is private.
Citadel expects a few hundred employees to be based in Miami next year, with some company people already working out of a temporary office in Southeast Financial Centre. The company employs more than 1000 staff in Chicago. The Mayor of Chicago was disappointed with the Citadel news and thanked them for their contribution to Chicago.
The mayor of Miami, Francis Suarez, said that Griffin who contributed $5 million to the disaster like Hurricanes relief fund, was already an invaluable stakeholder in the Chicago community.
According to Peebles, founder of Peebles Corporation, Griffin’s move to Miami means the place is the next financial capital of the US. Griffin has spent $350 million since 2012 on 20 acres of land in Palm Beach.
As finance, consulting, and tech firms migrate south, next are the law firms who are expected to follow. In February, King & Spalding opened its office in Miami, and Kirkland & Ellis plans to expand in May.
