Billionaire Stephen Ross Envisions Palm Beach as a Tech Hub
(Bloomberg) — Billionaire Stephen Ross is setting his sights on transforming Florida’s Palm Beach County into a new Silicon Valley, suggesting that it offers a more favorable business climate for tech investors compared to California.
In a recent interview with Bloomberg News in Palm Beach, Ross pointed out that California’s proposed billionaire tax is heightening investor concerns and highlighting the challenges of operating in that state. He sees this situation as a favorable opportunity for South Florida to establish itself as a burgeoning technology and financial center.
“Venture capitalists seem eager to leave California due to the various restrictions, high taxes, and the overall cost of doing business and living there,” Ross remarked. He believes that Palm Beach County is potentially “one of the best, if not the best place to actually do business in America today.”
Attracting tech firms aligns with a broader vision from the founders of Related Companies, who transitioned to Palm Beach during the pandemic. They have dedicated recent years to revitalizing West Palm Beach—a city that had previously been perceived as mediocre—by launching substantial office projects and luxury condominiums. Meanwhile, they have partnered with schools and hospitals to enhance the overall livability of the area.
Ross’s company recently achieved a milestone by securing the largest construction loan in Florida’s history, a staggering $772 million from Ares Management Corporation to develop 10 City Place and 15 City Place in West Palm Beach. These new towers are expected to contribute around one million square feet of new office space in a city primarily known for its small asset management firms.
Furthermore, Ross played a pivotal role in enticing Vanderbilt University to establish a campus in West Palm Beach, contributing about $50 million to support a program mainly aimed at graduate students in finance, engineering, and technology.
“You can feel the momentum building here as the city develops,” said Ross, who also owns the Miami Dolphins. “This city is evolving thanks to strong political leadership, and we aim for it to become a model for American cities in the future.”
He mentioned that there are several “excellent K-12” schools set to announce their locations in the area, although he did not specify any names.
Having shifted away from his day-to-day management role in 2024, Ross now leads Related Ross, primarily focusing on attracting financial firms and their employees to Palm Beach County. Companies like Steve Cohen’s Point72 Asset Management and Goldman Sachs Group Inc. are high on his target list.
Currently, Ross is also attentive to the tech community’s expansion. Recently, ServiceNow Inc., a leader in software from Silicon Valley, agreed to enhance its presence in West Palm Beach with the opening of an office that will accommodate hundreds of employees.
Ross identified significant opportunities, particularly in the defense technology sector. “South Florida has deep connections to the defense industry,” he noted. “That’s going to be a substantial growth factor here.”
With a net worth of $15 billion according to the Bloomberg Billionaires Index, Ross is keen on drawing more “important and influential” companies by showcasing the advantages of Florida over places like California. The state’s unions have proposed a ballot initiative for a one-time 5% tax on individuals with a net worth exceeding $1 billion, a move that has stirred debate among leaders and met resistance from Governor Gavin Newsom. This initiative still needs to clear the hurdle of gathering signatures and then approval from voters.
While Florida has seen an influx of Californians leaving during the pandemic, the San Francisco Bay Area still retains its status as a tech industry leader, thanks to a robust talent pool and its proximity to Stanford University, notably bolstered by a boom in artificial intelligence. Ross acknowledged that one of Palm Beach’s significant hurdles remains marketing the area as an attractive place for younger generations.
“People often perceive Palm Beach as a destination for their grandparents,” Ross expressed. “It’s crucial to be realistic about the challenges. We are committed to transforming West Palm Beach into a sought-after destination for young people.”
