New York City’s real estate moguls are gearing up for a fierce political showdown if socialist candidate Zohran Mamdani wins the mayoral race.
Mamdani, who has been vocal about his anti-business stance, emerged as the frontrunner after defeating Andrew Cuomo in the Democratic primary.
In stark contrast, Manhattan’s commercial real estate sector is bouncing back strongly following the challenges posed by the COVID-19 pandemic.
Recent data from CoStar highlights that the sector is experiencing its most prosperous period in over eight years.
Victor Rodriguez, who authored the CoStar report, weighed in on the situation, stating that the business landscape previously weathered similar concerns during Bill de Blasio’s tenure, which coincided with significant momentum in New York’s office market.
Rodriguez insisted that the city’s economy boasts numerous intrinsic demand drivers, making it difficult for any administration to significantly hinder growth.
Numerous companies, including major players like JPMorgan Chase, Amazon, and Pinterest, are actively expanding their space in Manhattan, while prominent developers such as Rudin, Vornado, and Boston Properties are gearing up for new skyscraper ventures.
In light of Mamdani’s proposed policies—such as imposing higher taxes on large corporations and suggesting a Marxist-inspired takeover of private enterprises—the business community is now rallying support for current Mayor Eric Adams, who will be running as an independent candidate.
An insider from the real estate space commented on Mamdani’s potential impact, expressing skepticism over his capacity to effectively lead the city.
They remarked, “He says a lot of things. He wants to make some things free like buses, but those kinds of benefits come at a huge cost. His candidacy might give some people pause, but it doesn’t mean he’ll be mayor. And if he does, he’ll find out right away that he can’t do what he thought he could.”
This sentiment was echoed by another industry figure who remarked that Mamdani’s platform appears so unrealistic that it could lead to his own downfall before the election.
As The Post sought Mamdani’s thoughts on commercial development and potential rent control measures, he did not respond.
The latest CoStar findings bolster the confidence of the real estate sector, indicating a resilient New York market, even in the face of opposition from figures they characterize as extreme leftists.
According to the data, Manhattan’s commercial real estate market, spanning nearly half a billion square feet, is not only recovering but thriving after being subjected to years of gloomy forecasts.
The report revealed contrasting trajectories for New York City compared to other parts of the country.
For the first half of 2025, Manhattan leasing surpassed levels seen in all but one year prior to the pandemic, underscoring the city’s post-COVID resilience.
Commercial brokerage reports further affirm this trend, indicating a significant decline in available office spaces from estimates of 20% to between 14% and 15%.
Comparatively, cities like Los Angeles and Chicago are struggling, with vacancy rates climbing as high as 24% and 26%, respectively.
New York City is also leading the nation in return-to-office rates, with landlords asserting that the work-from-home trend is already a thing of the past.
Some of the most sought-after areas, like Park Avenue, are nearly devoid of available space, and tenants at 550 Madison Ave are reportedly paying upwards of $200 per square foot.
Additional signs of a revitalized market include the highest absorption rate recorded for the second quarter, totaling 5.17 million square feet, the most significant figure since 2000 according to CBRE.
Markets like Hudson Yards and the Bryant Park area are experiencing continuous demand, with virtually no available office space left, as per JLL findings.
Moreover, the leasing activity for Class B and C buildings is witnessing a revival, with these accounts for 44.8% of the total leased space in the second quarter, up from 35.0% previously.
Current construction and planned projects reflect a modest inventory of only 3.6 million square feet, a small number compared to Manhattan’s total office space of over 450 million square feet.
Furthermore, most new developments are either owner-occupied or pre-leased, resulting in a scant 850,000 square feet available for potential tenants according to JLL.
In the first half of the year, the largest deals included Amazon acquiring 331,165 square feet at 452 Fifth Ave, NYU taking 1.07 million square feet at 770 Broadway in Midtown South, and Invesco leasing 204,424 square feet at 225 Liberty St. downtown.
As the November election approaches, the clash between the socialist agenda proposed by Mamdani and the revived spirit of Manhattan’s real estate landscape is poised to become one of the defining political and economic narratives of the city.
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