Wells Fargo is relocating the headquarters of its wealth management business to West Palm Beach, becoming the first major U.S. bank to base its wealth operations in Florida, the company confirmed Monday.
The San Francisco-based bank signed a lease for 50,000 square feet at the One Flagler office building, according to wealth chief Barry Sommers. About 100 employees, mostly senior executives including nearly half of the unit’s operating committee, will relocate to the new office by year-end, Bloomberg reported. The office is scheduled to open in August.
Wells Fargo’s wealth unit generated $16 billion in revenue last year, accounting for roughly 20 percent of the bank’s total revenue.
“Wells Fargo Wealth and Investment Management is advancing its strategic commitment to serving high and ultra-high-net-worth clients by increasing its presence in West Palm Beach,” a company spokesperson told Fox Business. “Several senior leaders are relocating to the area, strengthening our local leadership presence, and deepening engagement with clients in this high-opportunity market.”
The move reflects a broader migration of financial services firms to low-tax states. Wells Fargo joins JPMorgan Chase, Citizens Financial Group, and Bank of America, which have all recently expanded their presence in South Florida. But Wells Fargo’s decision goes further—making West Palm Beach the actual headquarters for a major business unit rather than simply opening a regional office.
Over the last five years, Palm Beach County has attracted more than 140 companies, creating or retaining over 13,000 jobs and generating more than $1.1 billion in capital investments, Fox Business reported, citing the Business Development Board of Palm Beach County.
Real estate mogul Stephen Ross, whose Related Companies is landlord for the new Wells Fargo office, told Bloomberg he expects more firms to follow. Ross has openly stated his goal of transforming Palm Beach County into a “Silicon Valley of the East.”
“What we’ve seen is companies that have already dipped the toe, have been here for years, have expanded their offices,” Ross said. “People are seeing the growth and where the country is headed.”
Texas is experiencing a similar influx. NASDAQ announced plans last month to open a regional office in the state, joining the New York Stock Exchange and the newly proposed Texas Stock Exchange. The development could position Texas as the only state hosting three major stock exchanges.
“NASDAQ is moving a regional office here in Texas because of all the business that’s going on,” Daryl Lyons, CEO of Pax Financial Group, told KSAT. “They just want to have a presence to be able to help these companies here participate in the publicly-traded markets.”
Wells Fargo’s Sommers, who moved his primary residence to Palm Beach County last month, said the relocation allows wealth executives to be closer to the firm’s largest clients. He emphasized the move is not about shrinking operations elsewhere—senior wealth executives will continue to be based in New York, St. Louis, and Charlotte.
“West Palm Beach’s strong business climate and expanding economic opportunities align well with our long-term growth priorities—both in the region and across our organization,” the Wells Fargo spokesperson said.
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