Apple to move out of Cupertino? iPhone maker latest tech giant to explore offices outside California

Apple Inc. is expanding its footprint in the city of Miami, Florida and is aligning with other major tech companies who have been strengthening their commercial presence in region.

Fortune, quoting sources familiar with the matter, reports that the tech giant is set to occupy a new 45,000 square feet or roughly 4,181 square meters in a new building located in Coral Gables, a prosperous suburb south of Miami.

Apple already operates a smaller office nearby, primarily focusing on Latin American operations and advertising, including the sale of advertising slots within the App Store.

Furthermore, the company is expected to open a substantial new retail store at the $4 billion Worldcenter development in Miami.

Since the advent of the pandemic, South Florida has become a focal point for the ultra-wealthy and their enterprises, with numerous firms either relocating to the area or expanding their existing operations.

For example, Amazon too. is actively seeking around 50,000 square feet in Miami following founder Jeff Bezos’s relocation from Seattle to Florida.

Similarly, Microsoft has recently leased a new office space in the city, which is situated in the same building slated to house the headquarters of Ken Griffin’s Citadel.

Apple’s upcoming Miami space will be located at The Plaza Coral Gables, a development project financed by Agave Holdings, a Mexican family office supported by profits from the tequila industry, if reports are to be believed. Raymond James has also established a presence in the building.

This surge in demand for office space has consequently led to a sharp rise in rental prices, with asking rates for commercial properties in Miami approaching $57 per square foot, according to insights from commercial real estate advisor Avison Young.

In recent years, we have seen many big tech companies pull out of California and move to Texas, or Florida, the most popular among them being Tesla, HP and Oracle, all of whom have moved to Texas.

While political leaders in the US will claim all sorts of things about immigration and other issues, the fact of the matter is it’s mostly about money. The cost of living in Californian cities has skyrocketed, especially when you look at commercial real estate.

The regulatory environment is too rough and makes it extremely tough for businesses. Moreover, talent in the tech industry doesn’t want to give up the possibility of working from home. It is looking for a better deal, and so are the companies that want to keep them happy.

Furthermore, tax incentives also play a massive role. Because companies don’t pay state income tax means serious savings for both the businesses and their employees. Add the business-friendly climate and affordable commercial real estate, and it’s no surprise that tech companies find places like Austin and Miami irresistible.

(With inputs from agencies)