About South Florida’s Appeal to One New York Firm

A number of major New York investment and technology firms are saying goodbye to New York to move into South Florida, like Citadel, Blackstone, Goldman Sachs, and more.GlobeSt.com sat down with R&B Realty Group’s Head of Development and Acquisitions, Shelby Rosenberg, whose company made its own exodus to the south.  

The pandemic has introduced a lot of uncertainty and a lot of questions, Rosenberg says—but the general migration from the northeast down to Florida has been building over the past several years, especially because of the tax benefits, quality of life, and of course, the great weather. “New York will continue to be a vibrant place to do business, but Miami also has a lot to offer—the weather, cost of living, great schools—all amenities that attract a high-quality workforce,” he says. “Top CEOs and executives are coming to these conclusions, so although this has been a trend for years, the pandemic has actually increased the momentum, and now we’re seeing the migration at an accelerated rate.” Following are excerpts from the conversation. 

How did your firm decide to enter the Miami market?

R&B Realty Group is a family-owned business, founded by the Rosenberg family. Since we began investing in New York real estate 20 years ago, the company has flourished into Ohio, New Jersey, Jacksonville and South Florida. We started out in garments, actually, and then invested in real estate in New York City’s garment district. The area had an amazing transformation, from manufacturers and wholesalers to creative spaces and offices through adaptive reuse. That’s one trend that we certainly saw in the Miami neighborhood of Wynwood as well. Also, like many New Yorkers, our family has been traveling and vacationing in Miami for decades. We saw a number of Miami’s neighborhoods really blossom, and we were excited about the future of the city. After those years of observation, we felt that Wynwood has a lot of similarities to the transformation we’ve seen in the garment district. We ultimately decided to enter the Miami market.

We are currently developing The Gateway at Wynwood, a building with 195,000 square feet of leasable Class A office space and nearly 25,900 square feet of prime street-level retail space. We also have other retail and office spaces. We see a future for our portfolio in Miami and South Florida, and are focused on that as we intend to continue this momentum. We are poised to grow our South Florida footprint and we are going in big with The Gateway.

How has Wynwood changed since you acquired the development site?

The project—between the idea stage and assemblage of lots—has been in the works for around five years. Since then, Wynwood has really exploded. There is a lot of local and national development happening in the area – hospitality, retail, residential, office—you name it. Wynwood really has seen a true transformation. No matter where you’re driving here, you see cranes. It’s very exciting. The neighborhood is evolving. Yes, it’s still a place where tourists can have a memorable Miami experience, but there’s really a lot of factors driving this area into a place where people will want to settle down. There are a number of new apartments and condos currently in the planning stages and under construction. Once people start moving in, those residents will be able to walk to work at The Gateway, eliminating their driving time. 

This was a difficult year to say the least, and yet you managed to move construction on budget and ahead of schedule. How were you able to do that?

Certainly, the pandemic created a lot of challenges. The Gateway at Wynwood is under construction right now. As first-time, ground-up developers from New York entering the market in South Florida, we made it a primary focus to gather the right team that can deliver under any circumstances. We’re on schedule to deliver the building in the second half of 2021, which we’re very excited about.

What advice would you give to New York businesses that are moving to Miami? 

You don’t need your winter coat in Miami. Like I mentioned, we vacation here, so growing up I knew Miami as a vacation spot. But the reality is over the last 15 years, especially the last five, Miami has been flourishing, with real staying power. A lot of the stigma around Miami—that it’s unprofessional, or only for vacations and partying—is far from the reality. Miami is a significant emerging market. New York executives, like us, are realizing that and we are making the move. This is the place and the time to invest.