‘Wall Street of the South’: how the “new Miami” attracted investors and companies

Miami, Florida, could be mistaken for Avenida Faria Lima for a few moments this past week. In addition to the drizzly weather – not typical for the region and time of year – part of the Brazilian financial market circulated through Brickell, a neighborhood that concentrates a series of banks, brokerages and management companies and, as of this week, also houses the new headquarters of: an office three times larger than the previous one, to accommodate the growth of the operation, which already has more than 100 professionals, in addition to receiving clients, partners and the press.

“There have been some waves of development in the city and, more recently, an acceleration in the recognition of Florida as a viable destination not only for families during vacations, but for companies as well, as the state is one of the few that does not have state taxes”, explains Marcelo Coscarelli, head of international private wealth management at XP Private Bank.

XP’s movement towards growth and solidification of the unit in Miami is not isolated. Many other companies began to be attracted to the city, which had always been an international vacation destination but still had a floating population – especially during the winter in the northern hemisphere, when it received most of its tourists, owners of vacation homes.

The process happened slowly but steadily, which earned the city the nickname “Wall Street of the South”. The coronavirus pandemic, however, accelerated the process. Many came to spend the most critical periods of lockdown, escaping the cold weather, and realized they could stay, explains Ricardo Saccardo, commercial head at XP Private Bank.

Ken Griffin, founder and CEO of Citadel, an American hedge fund giant with more than $69 billion in assets under management, is among those who moved to South Florida during the pandemic and is now funding a new campaign to get others to follow in his footsteps. Developer Stephen Ross, who also owns the Miami Dolphins football team, is also part of the movement.

The duo contributed US$10 million to the “Accelerated Ambition” initiative, which includes advertising and relationship actions comparing Miami and surrounding areas with cities in the northeast and west of the USA. In a statement, Griffin wrote that “Miami and the broader Gold Coast of South Florida offer a deep reservoir of talent, regulatory clarity and an extraordinary quality of life.” For the founder of Citadel, “these are not secondary aspects; they are foundations for long-term success.”

In the campaign launch statement, Ross wrote that “in previous generations, there were a limited number of American cities where companies could access opportunities and grow at scale,” which is why, he explains, he began his career building his businesses in these cities. He adds: “But to me, it’s clear that the next generation of companies belongs to Florida’s Gold Coast, from West Palm Beach to Miami.”

Real estate heating

The arrival of several companies – and their respective founders, managers and employees – has heated up the local real estate market. Citadel itself, for example, is building a new $2.5 billion headquarters in the Brickell financial district. Designed by Foster + Partners, the seaside skyscraper will have at least 50 floors.

Among residential properties, prices also increased. The couple Mark Zuckerberg and Priscilla Chan made history in the Miami real estate market when they purchased a US$170 million mansion on a private island in Biscayne Bay. According to information from Bloomberg, the property located at 7 Indian Creek Island Road is the most expensive house ever sold in the city.

In Indian Creek, Zuckerberg will have as neighbors Amazon founder Jeff Bezos, investor Carl Icahn, former American football player Tom Brady, and Ivanka Trump and Jared Kushner. The island, however, is not open to curious people: nicknamed the “billionaires’ bunker”, the region functions as an independent municipality, with streets, country club and golf course closed to the public.

In recent weeks, other familiar names have circulated among new property owners in the region. Larry Page purchased three homes in Miami’s Coconut Grove neighborhood for around $190 million, while Sergey Brin purchased a roughly $50 million mansion on Biscayne Bay.

A few days ago, Howard Schultz, former CEO of Startbucks, also announced, via LinkedIn, that he was leaving Seattle for Miami after 44 years in the coffee chain’s home state, Washington. According to the Wall Street Journal, he paid around US$44 million for a penthouse measuring approximately 510 m² at the Surf Club, Four Seasons Private Residences, in Surfside, Florida.

Alex Karp, CEO of Palantir Technologies, whose headquarters will also be located in the city, is already another property owner in the region. Palantir is a software company that partners with the US government in developing defense technology. In a post on X, the company announced the move of its headquarters from Denver to “South Wall Street”.

“Miami is the new financial hub of the world. It is not an exaggeration to compare the city with New York in terms of business decision-making center”, summarizes Coscarelli.

*the journalist traveled at the invitation of XP