Billionaire Ross Lures ServiceNow for South Florida Expansion

ServiceNow Inc. is expanding to West Palm Beach, Florida, opening a location for several hundred employees in a planned office tower being developed by billionaire Stephen Ross, the famed New York real estate magnate who broke from Related Cos. last year to focus on his Florida projects under the name Related Ross.

The Santa Clara, California-based software company said Tuesday it’s leasing 200,000 square feet (18,600 square meters) in Ross’ development, which will include a new artificial intelligence “institute” featuring a startup accelerator for early stage tech companies.

“West Palm Beach is the latest move in ServiceNow’s tradition of embracing bold economic developments across the country,” Chief Executive Officer Bill McDermott said in a statement. “This will be a compelling magnet for talent, a strong engine for growth, and a dynamic hub for America’s AI leadership.”

Bloomberg reported in March that ServiceNow was pursuing an expansion and possible headquarters relocation to West Palm Beach. McDermott said Tuesday during an interview with Bloomberg Television that the company’s base will remain in Silicon Valley and that it still will have “a very large commitment to the state of California.”

ServiceNow representatives said executive leadership won’t be relocating, but McDermott said some “executive leaders on the top management team” will be moving to the new office. He also said about 20% of the workforce would transfer to Florida and 80% of the company’s net new jobs will be based there.

McDermott said he will continue living in California and will spend a lot of “discretionary time” in West Palm Beach.

ServiceNow specializes in software that helps companies organize and automate their human resources and information technology operations. It topped $10 billion in annual revenue in 2024 and is projected to reach $13.2 billion in sales this year. ServiceNow, like most software platforms, has been weaving generative AI features into its products.

Shares of ServiceNow fell 1.6% at 2:45 p.m. on Tuesday. The company’s market capitalization stands at $194 billion.

Company representatives said the West Palm Beach office will initially house a few hundred employees, but ServiceNow aims to have 850 workers there in the next five years, focusing on new hires in Florida.

ServiceNow is the largest tenant in Ross’ 10 CityPlace development. Combined with the neighboring project at 15 CityPlace, the two towers will add 1 million square feet of office space to downtown West Palm Beach and are slated for completion in 2027.

“As a leader in enterprise AI, ServiceNow will catalyze innovation and economic opportunity in West Palm Beach, positioning the city as a premier destination for forward‑thinking technology companies,” Ross said.

ServiceNow’s large office expansion is a positive development for West Palm Beach, which has made headlines trying to brand itself as “Wall Street South,” but doesn’t have a significant tech presence. It’s also a win for Ross, who is one of the area’s biggest cheerleaders and describes himself as “a longtime believer in the potential of South Florida.”

Ross, who is the owner of the Miami Dolphins, moved full-time to Palm Beach during the pandemic. He had already played a part in redeveloping downtown West Palm Beach and decided to go all-in on the midsized city 70 miles north of Miami, which he’s referred to as his “model city.”

Beyond offices and condos, he’s pledged to bring schools, top universities, and high-paying jobs in tech and finance to what’s historically been considered a winter vacation getaway for wealthy people from the Northeast and Midwest.

“South Florida is different than the rest of Florida,” Ross said Tuesday during the Bloomberg TV interview. “It’s really poised to grow and attract jobs. It’s never done that before; it’s always been second homes.”

Top photo: A marina in West Palm Beach (Bloomberg)

Topics Florida