Offices Reopening: Revamped Future for Investment Management Companies - What's In Store?
In the bustling heart of New York, the city that never sleeps, a significant change is underway. Across Midtown and Lower Manhattan, an unprecedented 16.4 percent of office space now stands vacant, a stark contrast to past crises [1]. This surge in available office space is a telling sign of the impact of the COVID-19 pandemic on the city's business landscape.
Among the affected are some high-profile hedge funds, which have chosen to uproot their headquarters from New York and set up shop in Florida [2]. Notable among these is Elliott Management, drawn by the Sunshine State's favourable tax environment. This trend is not unique to Elliott Management; several hedge funds have followed suit, relocating or expanding their operations to Miami [3].
As the world gradually returns to normal, investment managers are faced with a new set of challenges and opportunities. One such challenge is the need to prioritize client relationship management [4]. As life resumes its rhythm, maintaining and nurturing these relationships will be crucial for success.
Another challenge lies in the technology and cloud solutions that underpin the new remote work setup. These solutions must be robust and watertight to ensure seamless operations [5]. The industry has made great strides in digitalizing and automating core processes during the pandemic, and these changes must be made permanent once the crisis subsides [6].
The future of office space in New York City is also uncertain. Many companies, including those in the buy-side, are embracing mixed working patterns and may look to downsize their offices or relocate to more affordable areas [7]. Some investment managers may even consider relocating their headquarters from traditional finance centres such as New York in favour of areas with lower overhead [8].
Investment managers are planning a return to the office, but a hybridized approach is expected [9]. Employees are likely to spend two to three days in the office at most, with the rest of the workweek spent remotely. On-site due diligence will resume once it becomes safe to do so [10].
Chloe Schwartzapfel, the Managing Director and Global Head of Sales at Portfolio BI, offers insights into these changes. This article is a guest piece for Hedge Funds, published by The Sortino Group [11]. For more information about reprints from AlphaWeek, a link is provided [12]. The views expressed in this article may not align with those of AlphaWeek or The Sortino Group [13].
Sources: 1. [Link to source] 2. [Link to source] 3. [Link to source] 4. [Link to source] 5. [Link to source] 6. [Link to source] 7. [Link to source] 8. [Link to source] 9. [Link to source] 10. [Link to source] 11. [Link to source] 12. [Link to source for reprints] 13. [Link to source for disclaimers]
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