noticias
"Growth has a cost": Billionaire Ken Griffin on the population increase in South Florida
Dec 18, 2024
When the Covid-19 pandemic hit, Ken Griffin, founder and CEO of Citadel, knew he had to find a place to do business that was not limited by quarantines or social distancing restrictions.
Florida was the obvious choice. The hedge fund manager ended up setting up an operations room in Palm Beach in just five days.
"In New York City, that would have taken years," Griffin said on Monday at the 12th Annual Best Practices Conference of the Miami-Dade County League of Cities. Griffin, who moved to Miami from Chicago in 2022, spoke to dozens of county lawmakers and economic development officials at the event, where he conversed with Karyn Cunningham, president of MDCLC.
Griffin has already made an impact in South Florida's business and philanthropic circles. Since his arrival, he has donated $50 million to Baptist Health South Miami and the Sylvester Comprehensive Cancer Center at the University of Miami. He also donated $10 million to the Pérez Art Museum in Miami and $5 million to The Underline, among other local institutions.
Moreover, he quickly became Florida's largest political donor, spending over $20 million on state and local elections alone in 2024.
"If someone can come to our community and invest millions of dollars over the course of a few years, it’s because they see the value of what the 34 municipalities of [Miami-Dade] offer," Cunningham, who is also mayor of Palmetto Bay, told Business Journal.
"Growth has a cost"
Griffin is part of a wave of financial professionals who moved to South Florida — and brought their businesses with them — during the pandemic years. While the trend has been a boost for the business community, he acknowledged that the influx of new residents has also caused a rise in housing prices and worsened traffic.
However, Griffin said that this isn’t necessarily a bad thing. Although it is inconvenient, these changes are a sign that South Florida is a place where people want to be.
"Growth has a cost, but the challenges of growth are preferable to places like Chicago or Detroit, where there is no growth," he stated.
The crime rate in Chicago, where Griffin lived for 30 years, is pushing professionals away. Convincing Citadel employees to move to Miami from the Windy City wasn’t difficult, Griffin commented.
There are still challenges ahead for South Florida. Traffic is a serious problem, and investment in better public transportation systems will be necessary to facilitate people's movement, Griffin said. Another hurdle is controlling housing costs. One way to address this, he noted, is by making it easier for developers to obtain building permits.
"Introducing more supply into the market will help manage prices," he explained.
Griffin said that the permitting process is an example of how certain regulations can slow down business. While he believes that "regulation is important in a market economy," he argued that there are many unnecessary rules that hinder companies, especially small and mid-sized ones.
This is relevant in Florida, where it is estimated that 40% of the workforce is employed by companies with fewer than 250 employees.
"We really want to encourage the rise of small businesses, because they create tremendous value for communities," he expressed.
2025 will be a big year for Citadel. The hedge fund will finally begin construction on its new 54-story glass tower at 1201 Brickell Bay Drive in the third quarter. The project will include various amenities, such as two restaurants, a rooftop hotel, and a waterfront terrace.
Citadel has more than 4,600 employees and also plans to expand its presence in London and New York. But Miami is its fastest-growing office in the world, Griffin said.
"It won’t be an iconic building for Miami, it will be an iconic building for the world," he claimed about Citadel's future headquarters. "This is our home, this is where we want to stay, and the moment you see it, you will realize you are in an extraordinary place, competitive with the best of London, New York, or the Far East."