Can Florida Become The Next Big Tech And Finance Hub?

Video Statistics and Information

Video
Captions Word Cloud
Reddit Comments

"NEW YORK BAD"

👍︎︎ 21 👤︎︎ u/Otherwise-Fox-2482 📅︎︎ May 08 2021 🗫︎ replies

Isn't this what red states want, for the wealthy to move to their states?

👍︎︎ 10 👤︎︎ u/dudlord 📅︎︎ May 08 2021 🗫︎ replies

No.

👍︎︎ 5 👤︎︎ u/Idntknwmuchthrowaway 📅︎︎ May 08 2021 🗫︎ replies

Florida looks fun to visit, but I don’t know how people can live in that humid weather

👍︎︎ 3 👤︎︎ u/brotherlymoses 📅︎︎ May 09 2021 🗫︎ replies

As a native floridian, i can tell you STAY THE FUCK AWAY FROM US. Dont New York my Florida.

👍︎︎ 3 👤︎︎ u/DINGDONG_8 📅︎︎ May 08 2021 🗫︎ replies

I hope so

👍︎︎ 1 👤︎︎ u/Most_Present_6577 📅︎︎ May 08 2021 🗫︎ replies
Captions
Got Miami Beach average sale prices they're up 72% got prices up double digits in Boca Wellington Bal Harbour Del Rey all across southern Florida. It isn't called the Sunshine State for nothing. Over 230 days of sunshine per year, 600 and some miles of beach, Disneyworld, fancy sports cars, a wild nightlife, and of course, no income tax. My kids nickname because we live in Orlando. They called me Disney dad. When we would come here because I was always in a good mood. We didn't stop hearing about Florida in 2020. from Florida now golden ticket in Florida. It sounds like Florida. Well, you're not alone. Some of Wall Street's biggest names like Goldman Sachs, Elliott, management and Citadel group have or are considering opening offices in Florida. High profile investors like Keith Rabois, Shervin Pishevar and Jon Oringer already made the move. Even JetBlue is considering it. For years, even though people would talk about moving, it really wasn't cool among the wealthy to move to Florida. It was like, okay, you couldn't hack it in New York, go to Florida. Now, you're the chump who stayed in New York. But it's not just COVID. Reports of Florida slowly morphing into a legitimate tech and financial hub has been loosely talked about for over a decade. In 2018, Florida solidified its place in the big leagues when $2.88 billion was raised in venture capital. That trend has continued all throughout 2020. I think actually Miami has the opportunity within the next like five to 10 years to you know not only become a tech hub, but being the largest tech hub in the United States. Never in my three decades of doing this have I ever seen the level of economic development activity. But Florida's economy has long been marked by low paying tourism and service sector jobs, inequality and ravaging climate change. It's ranking near bottom for affordable housing and health and unemployment insurance access. As much as people understand Florida to be a beautiful place to go and vacation. There is almost a synonymous or parallel understanding that the state of Florida is backwater hail for a lot of people. As consumer and employment behavior shifted during the pandemic quality of life became a priority. And Florida seemed like an obvious choice, at least on the outside. Three Floridian cities were among the top six choices for New Yorkers fleeing COVID. So can Florida become the next big tech and finance hub? In December 2020, venture capitalists Delian Asparouhov tweeted, okay, guys, hear me out? What if we move Silicon Valley to Miami? I sort of had this like, first moment where I'd kind of I'd say, like, a crack in the foundation of my like, you know, belief in San Francisco sort of occurred. Within hours, Miami Mayor, Francis Suarez responded, how can I help. You know, by time I visited in March, actually had more late stage in particular investors, let's say Series B and beyond than San Francisco did. Partially because how all of this sort of crossover in hedge funds have entered into venture capital are deploying more dollars than even the venture capital firms are. So this nexus of power were sort of already shifting and a lot of those have moved to Miami already, both professionally and personally sort of had a sudden realization I was like, oh my God being here. I got move here. That happened on a Friday night and by Sunday night, we had you know, put a bid in on a house in the design district. Delian's tweet and eventual move has fueled momentum that Suarez and other locals have capitalized on. From conversations with celebrities like David Beckham and tech billionaire Peter Thiel to Softbank's pledged to invest $100 million in the city. The notion that high earning jobs in tech and finance could migrate down Florida, has locals buzzing. Pre COVID we had landed maybe 50 or 60 financial service firms. Many of them had somewhere in the range of $500 million assets under management. Now we're seeing companies that have assets under management. well over a billion dollars. The state has many draws. Aside from the sunshine its welcoming business climate is high on the list. According to the Tax Foundation, after Wyoming, South Dakota and Alaska, Florida is the fourth friendliest business state in the country. No individual income tax and low corporate and unemployment insurance taxes. Looking at more than 60 measures of competitiveness, CNBC ranks the state 12th fourth for access to capital after California, New York and Texas. It was around tax season, and my accountant jokingly said to me, why don't you go move to that house you built down there and stop busting my chops every April 14. I was like, alright. Casaburi is a member of Tiger 21, a peer membership network for high net worth individuals. He moved his family of six to Orlando about six years ago. Lifestyle is fantastic. The obvious. The weather's great. There's beaches all over the place. You're on either coast. Airports are fantastic, yoou can be all over the country very quickly. But really what's happening down here is really incredible. Everywhere you drive around, you see building. The past few years, we saw it happening, then, you know, tack on COVID and it just exponentially changed the impact. The influx of the wealthy has reflected in real estate sales too. South Florida home sales valued $1 million and above jumped between 40 and 50% in 2020, compared to 2019. This is a long term move for these companies. And I don't believe that they would be signing eight to 10 year leases, with options to expand. I don't believe that they would be putting their kids in schools and uprooting them from their private schools and public schools in New York, Boston and Connecticut if this weren't long term, and I don't believe that they would be buying $20 million homes if this were short term. There is so many amazing, talented people from from every standpoint, from marketing standpoint, from creative standpoint, from leadership standpoint. And people are always willing to move. Listen, if I was telling people to move to Nebraska, it might be a little bit difficult to sell. The average financial salesperson or analyst in Florida makes about half of what they'd make in New York. That could be a deterring factor for individuals choosing between job offers in New York or Florida. We have a company that we recently offered, you know term sheet here to LA that said, you know, for the past three or four years that they've been building their company here, it really struggled to find the talent that they needed locally in Miami, and also really struggled with being able to import talent. And they said that over the course of COVID, and in particular now with Miami tech week flipping, they're basically importing talent left and right and they're able to sort of get their pick of the litter of the top tier engineers in the world. Migration trends are a strong indicator of growth. Between 2010 and 2019, Florida received over 2.3 million more people than it lost, the highest in the nation. The population grew by nearly 15% in the last decade. But more than half of that growth came from people aged 60 and above. In 2020. Contrary to many reports, population growth was expected to slow down. According to an independent analyst on cellphone data, migration to Tampa and Orlando surged, but dropped sharply in Miami. The overall impact ended up being roughly neutral. The creation of millionaires, it happens in New York City, it doesn't happen in Florida. Florida is a place where millionaires go to retire. If you're a young person thinking about you know, where am I going to launch my career, New York is still you know where it's at, you know, and that'll be the story next year and 10 years from now. Florida's economy has come a long way over the past 50 years. In 1963, it was the 11th largest economy in the country. Today, it's the fourth just behind New York. Florida's gross state product, which is commonly used to measure the health of an economy, also stayed well above the national average in the seven years prior to COVID. Except for the dips in the '08 recession, employment grew in every category until 2020. True health of an economy is really how the quote unquote bottom is doing. How are teachers doing? How are our public sector workers are doing. And you will see in Florida, just like in every other state, that teachers are going mad, trying to trying to provide some sort of education for children. Parents are going mad, trying to provide some sort of lives for their children and live for themselves. The economy is not healthy, right? A very few are healthy. Just like anywhere else in the world, COVID was tough on Florida, real GDP fell 2.9%. And despite its lax COVID closures and the stories of mass influx of people, between Q3 and Q4, the state only grew 3.1%, in comparison to other states with no income tax like Texas and Tennessee. It's hard to believe that there's this rise of Florida. Florida has a growing population. And that's mostly of lower income earning population that are leaving, you know, the New York area, the New York metro area because, again, of enormous affordability problems, you know. While an immense amount of wealth enters Florida annually, median income in the state is about 13% below the national average. Most employed Floridians work in construction, restaurants and food services, and elementary and secondary schools. Inequality is increasing over time. And the state spends less on public services like health and education per capita than any other state in a nation. That has resulted in social and economic problems like suppressed low and middle income wages, social fragmentation, poor health and violence. There's 2, 3, 4 different Florida's that people live in. There's a tax haven, Florida where people can lay out on the beaches or sit in their pent houses. There's the Florida of tourism where people could go to Disney and then there's a state of farm workers who work from sun up to sun down, get shuttled from school buses from their homes, have no protection, usually have no papers. There's a life of black people who continuously live with no representation, have the worst jobs in the state. The best things that you know about Florida on those beautiful postcards are at the expense of black people of immigrant people, Haitian folks, African folks, these are the invisible people who make Florida run. Spending more than a year working from home has reassured companies that they can cut back on pricey New York City or San Francisco offices, while maintaining revenue. And Florida has benefited from that shift. But for it to become an epicenter, could take time. It took New York City centuries to build its agglomeration and economies of scale. It remains to be seen if and how South Florida can accomplish that. What really excites me about Miami, is ethos that everybody here is really excited about, right? pro technology, pro capitalism, pro immigration, you know, cheap housing, low cost of living, low taxes, being able to like grow into that I think is really important and all the early signals to me seem you know, quite positive. But it'll be interesting to see sort of in September and October you still seeing this continuous exponential growth. This is all real. This is not a dipping of the toe in the sand. We know this because they're talking to local accountants and local attorneys and the traffic is very high to those offices.
Info
Channel: CNBC
Views: 804,891
Rating: undefined out of 5
Keywords: CNBC, business, news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, financial news, Stock market news, stocks, rise and fall of new york, Florida wealth tax, is Florida the new new york, Florida new york, Elliot Management, Citadel, Shervin Pishevar, tech finance florida, florida tax, florida living, florida companies, why are New Yorkers moving to florida, New York exodus
Id: 2n7h2Y7wrYU
Channel Id: undefined
Length: 10min 50sec (650 seconds)
Published: Sat May 08 2021
Related Videos
Note
Please note that this website is currently a work in progress! Lots of interesting data and statistics to come.