New York Lacks ‘Growth Engines’ for Tech, JPMorgan’s Schwartz Says

(Bloomberg) -- The real-estate industry has hailed New York City as the next Silicon Valley but not everyone is convinced.

“I don’t know what companies are really thriving here -- like the growth engines they have in San Francisco,” said Doug Schwartz, chief investment officer of Americas real estate at JPMorgan Asset Management, at an industry conference Tuesday.

As an example, Schwartz pointed to a recent meeting JPMorgan held about 5G wireless technology, the new cellular networks that promise a revolution in connectivity. His colleagues listed the most successful companies in a presentation, and not one of them was based in New York, he said.

“It’s hard to look forward and go, alright, in 30 years, how is New York going to take advantage of all that change?” Schwartz said. “I just don’t see it.”

Amazon.com Inc. dealt a big blow to New York’s tech-giant status when it backed out in February following public backlash over anticipated tax incentives and strains on housing and transportation. Other companies, including Apple Inc. and Google, both based on the West Coast, have announced plans to expand in the state in recent months.

To contact the reporter on this story: Lily Katz in New York at lkatz31@bloomberg.net

To contact the editors responsible for this story: Debarati Roy at droy5@bloomberg.net, Rob Urban

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