Start spreading the news. Goldman Sachs is leaving today … or soon.
The financial giant is planning to make a brand new start of it in Florida by relocating its asset-management division that generates $8 billion in annual revenue, according to Bloomberg. Taking the hub to Palm Beach County or Fort Lauderdale will be another major blow to the stature of New York as the nation’s financial center.
Goldman Sachs Group Inc. is enticed by the tax advantages of such a move, with sources telling Bloomberg that executives have been scouting office locations and talking to local officials. The idea of a move was made more plausible by the success of remote operations during the pandemic. Dallas is also a consideration for continued expansion with its corporate presence there.
Continued departures for tax breaks and lower cost of living have put Manhattan office space at its highest vacancy since after the 9/11 attacks. In 2018, AllianceBernstein Holding LP moved its headquarters to Nashville.
Goldman Sachs, with 41,000 employees, has moved employees to Dallas and Salt Lake City in recent years to reduce costs, and it set a goal earlier this year of cutting costs by $1.3 billion.
“We are executing on the strategy of locating more jobs in high-value locations throughout the U.S., but we have no specific plans to announce at this time,” a Goldman Sachs spokesman emailed Bloomberg.
It is difficult to picture Goldman Sachs and palm trees but if the company can make it in New York, it can make it anywhere.