Real estate developers in Florida are preparing to launch its first hedge fund “hotel” in the state’s Palm Beach County to accommodate industry professionals who are relocating to the region due to tax breaks.
FINalternatives reported that the Palm Beach Executive Center has partnered with the newly-launched real estate firm Hedge-Estate to open an office building that will house hedge fund employees. Office space in the executive center will range from 100 to 3,000 square feet.
According to a recent eVestment article, many New York-based hedge fund managers are flocking to Florida to escape the state's high tax rates. While the federal tax rates are the same in both regions, there is no state income tax in Florida. The demand for industry professionals to relocate to the Sunshine State is so high that officials in Palm Beach County have already launched an office just to answer questions.
Among firms that have already relocated includes hedge fund manager Edward Lampert's ESL Investments, which moved from Connecticut last year.