New York City businesses are leaving the city after its recent mayoral election, as new data shows several companies filing to relocate to Florida.
WATCH BELOW: 'That’s always a concern. Rent is a really big deal for a business,' Kim Grzech tells the Scripps News Group
Zohran Mamdani, who was elected as New York City mayor Tuesday, has pledged to increase taxes for corporations and individuals making more than $1 million, a move that sent shock waves through the business community.
The morning after Mamdani's election victory, Florida business relocation attorney, Chad Cummings, told the Scripps News Group in West Palm Beach that he received five to ten times his usual number of calls from New York companies seeking to move to Florida.
"My phone, and I'm not exaggerating, has literally been ringing off the hook. I have not been able to leave my desk since about 7:30 this morning," Cummings said. "What we are seeing is really unprecedented."
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Cummings said Wednesday alone, he spoke with nine companies targeting Palm Beach County and three others eyeing Port St. Lucie.
"They are very candid, for the most part, that this is a decision that is driven by the election results in Manhattan and a desire to escape what they perceive to be an oppressive regulatory and tax regime," Cummings said.
The Scripps News Group dug through Florida's corporate filings, and found that in just the past few days, at least 27 New York companies filed to expand operations in Florida, while nine more filed to relocate entirely.
Boca Raton Mayor Scott Singer confirmed Tuesday that four corporate headquarters are already planning moves to his city, with many more companies reaching out since the election.
When asked how many businesses have expressed interest in coming to Boca Raton, Singer said there are "too many to count."
"And we can expect more calls," said Singer. "We've continued our strategic and targeted marketing to businesses, because this effort is about bringing businesses to Boca Raton."
Mike Simas, president of Florida's Council of 100, welcomed the new businesses in a press release Wednesday.
"The people we really want to attract to market to continue to drive that high wage job growth," he told WPTV.
Local businesses brace for impact
The influx presents both opportunities and challenges for existing Florida businesses. Kim Grzech, who has owned Boca Print Shop since 1995, sees potential for more printing jobs but worries about increased competition and rising costs, particularly in rent increases.
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"That’s always a concern," replied Grzech. "Rent is a really big deal for a business."
In an interview Wednesday, CEO Talbot Sutter said he's already seeing a surge in real estate interest in Palm Beach County coming from New York, and warned of potential price increases.
"In my 30 years, I've seen a lot of businesses come and go. It's been harder and harder for smaller businesses to compete," said Grzech.
Cities prepare for growth
Singer said Boca Raton's strategy focuses on attracting the right-sized companies for the city.
"Our targets have largely been companies that are the right size for Boca — the financial sector, and if you move a corporate headquarters here, you may get high-paying jobs without all the people," Singer said.
The mayor noted that Boca already has a high inventory of office space available for rent.
In St. Lucie County, Economic Development Director Pete Tesch said he hasn't seen any direct influx of interested businesses because of the election, but explained that indirect effects are likely.
He said the county has experienced significant industrial growth, with over 16 million square feet of industrial space largely occupied by Fortune 100 and 500 companies. Institutional investors and banking activity in the region often translate into property acquisitions, which could have downstream effects on St. Lucie County’s economy.
"This is a continuing trend," said Tesch. "You're starting to see even more investment bankers, hedge fund managers come from New York City. We’ll probably continue to see the impacts over the next few years."
Simas said Florida has formed a committee to address growing pains associated with the business influx, including affordable housing, traffic and transit issues.
"We're focused not just on the opportunity. We're also squarely focused on the challenges that the state faces right now," Simas said.
For business owners like Grzech, the hope is that existing companies will be included in future planning.
"I'm hoping we'll be part of that plan — because it's a big concern," Grzechsaid.
This article was written by Kate Hussey for the Scripps News Group in West Palm Beach.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
