Mamdani - NYC so far
Spoken to quite a few NYC groups and my friends at NYEDC the last week.
Sentiment is the big players will be fine with lobbying and the smaller folks will take the brunt of the pain.
3 operators I spoke to already had layoffs of office staff (2-3 employees each) in preparation. 2 were lined up to hopefully get help from the adams administration before he left office, now that hope is gone. Others reverting to the disaster that is 485w and will build to 99 units to hopefully get back to even.
Other groups focused on value add in the city are pencils down until the RGB board is set. Lot’s of worry around who Mamdani appoints to board. Most worried he will appoint 30 year old's who are still too young to understand the bigger picture besides “rent increase bad.”
Folks at NYCEDC are NOT happy. Worries stem around the same sentiment as the Amazon HQ2 debacle years back. You have the knowledgeable folks understand the importance of tax breaks, others (AOC/Mamdani) who have a hard time grasping the bigger picture.
Smaller landlords worried NYC will revert back to what its was in the 70s. Freezing rent stabilized units drives rent/NOI down, inevitably building turns decrepit additional without tax breaks, culminating w/ building taken back by lender/city.
Hard to see the light at the end of the tunnel for NYC real estate if you aren’t one of the big players. Curious to what others are seeing. Is this the end of NYC?
Laying off people before the dust has even settled doesn't seem reactionary, it seems opportunistic.
Why are you firing people? Pass out your rent increases. Refinance with assumable debt. And sell those suckers!
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