The recent departures of some major investment firms from New York have resulted in nearly $1 trillion in combined assets under management that are no longer based in the largest U.S. city, according to a new report.

And New York isn’t alone. California investment firms decamping to other states over the past several years, with Texas as the top destination, also managed nearly $1 trillion in combined assets.

Around 158 companies managing $993 billion in assets, including AllianceBernstein and Elliott Management, moved their headquarters out of New York to states including Florida and Tennessee from the first quarter of 2020 to early 2023, according to a Bloomberg study of corporate filings from more than 17,000 firms since the end of 2019. New York alone accounted for 56 of the 104 financial services firms that moved to Florida in that time, the study found.

In total, since the start of 2020 through the end of March 2023, more than 370 investment companies, or about 2.5% of the U.S. total with $2.7 trillion in assets under management, moved their headquarters to a new state, the study found. Most of the moves were from areas with high costs of living in the Northeast and on the West Coast to Sun Belt states including Florida and Texas.

The investment firms and their relocating employees can have big ripple effects on the commercial property market beyond office buildings to retail and residences. Finances of the new markets also are affected, especially since asset managers are often high-wage earners, not to mention top executives or founders who are often millionaires or billionaires.

The net number of taxpayers moving out of New York based on the preliminary 2021 tax-year data at the time was over 10,000 higher than the annual net average of 28,700 personal income taxpayers between 2015 and 2019, according to a separate study by New York State Comptroller Thomas DiNapoli’s office. The net number of millionaires leaving in 2021 was almost three times that in 2019, according to the comptroller’s office, adding that a continuation of the trend would hurt New York state’s personal income tax collections, the single-largest source of revenue.

The migration trend followed a net total of 112,400 taxpayers moving out in 2020, nearly four times as many as in 2019, according to the comptroller’s study.

On the commercial property front, while AllianceBernstein still has a New York footprint, CoStar data shows the size has declined to about 166,000 square feet with the firm's expected move to 66 Hudson Blvd. after it exited about 733,000 square feet in 2021 at 1345 Avenue of the Americas.

AllianceBernstein said in its original 2018 announcement that its planned move to Nashville, Tennessee, would involve relocating over 1,000 jobs in the New York metropolitan area. The firm officially debuted its downtown Nashville headquarters spanning more than 221,000 square feet last year.

The effect is deep for cities that have welcomed new firms. For example, the headquarters relocation of Citadel from Chicago to Miami has spurred demand for new top-quality office projects. Manhattan developer L&L Holding is planning a 1 million-square-foot, mixed-use apartment, office and retail project in the Wynwood neighborhood, its first major development in Miami.

The migration trend also has retail tenants following suit as they seek to capitalize on newcomers with spending power. New York-based Major Food Group opened restaurants in Miami during the pandemic, including Carbone, Sadelle’s, HaSalon, Dirty French Steakhouse and ZZ’s Club. Local real estate brokers have said many of the retail and restaurant names flocking to the market often are better known for their outposts in the Big Apple.