In a closed-door meeting last month, Tishman Speyer’s Rob Speyer had some questions for Zohran Mamdani.
Speyer asked about Mamdani’s proposal to freeze rents for stabilized apartments, drilling down on the fact that such a move could discourage construction of rental buildings and plunge older housing stock into further distress.
This was the Democratic mayoral nominee’s first attempt to make his pitch to business leaders. Mamdani spoke with members of the Partnership for New York City, a consortium of business executives that includes some of the biggest names in the real estate industry.
For most of the organization’s members, this was the first time that they’d met Mamdani. According to Partnership CEO Kathy Wylde, the answers weren’t a total flop.
Mamdani, per Wylde’s telling, recognized the need to reexamine the city’s property tax system, which has long been criticized for saddling multifamily properties with a disproportionate tax burden, and that a rent freeze would need to be combined with some relief for property owners.
“I think he responded in a way that could have given some comfort,” she said.
But one meeting isn’t going to change years’ worth of fears the industry has about socialist leaders guiding New York policy. And although avenues of communication are beginning to open, the question remains whether Mamdani will actually listen to what real estate has to say.
“Mamdani’s diagnosis of our affordability crisis is correct, but I am concerned that some of his proposed solutions could make things worse, especially for working people,” RXR CEO Scott Rechler said in an email.
Rechler, who wasn’t at the closed-door meeting, noted that a “major concern” remains Mamdani’s “inability to directly condemn antisemitism” and felt comments the Democratic nominee made during the Partnership meeting were a continuation of that. During the meeting, Mamdani pledged to discourage the phrase “globalize the intifada,” used by some opponents of the war in Gaza, which some have interpreted as a call for violence against Jewish people, Gothamist reported.
For real estate specifically, the political and professional divides are likely more pronounced. Wylde said that executives in other sectors might not feel as threatened by Mamdani as real estate. They realize that much of what affects their business — such as, say, raising the corporate tax rate, as Mamdani has proposed — is outside the mayor’s authority.
“I’m sure he doesn’t want the industry’s support.”
“Real estate decisions are almost always made locally,” she said.
Still, Mamdani has said he supports streamlining the city’s land use review process and curbing the ability of individual City Council members to kill rezonings, two ideas that developers can get behind. His pledge to freeze rents and raise taxes? Not so much.
The prospect of a Democratic Socialist leading New York City drove many real estate executives to pour money into former Gov. Andrew Cuomo’s campaign. After Cuomo’s loss in the Democratic primary, many have turned back to Mayor Eric Adams and are supporting his reelection bid in earnest.
Rechler donated $250,000 to the super PAC tied to Cuomo. After the primary, he said he was open to supporting Adams.
Last month, Adams reported $1.5 million in contributions from June 10 to July 11, a majority of which he received after the primary. Donors working in the real estate or construction sector put in upwards of $480,000 during that time (which on its own was more than the $460,000-plus he raised from all donors between Jan. 12 and June 9). Real estate executives, including SL Green CEO Marc Holliday, have held fundraisers for Adams. Employees of the real estate investment trust gave the mayor more than $67,000, records show.
“Voters are looking at the alternative and saying, ‘We can’t afford to go backwards,’” Todd Shapiro, a spokesperson for Adams, said after the donations were made public.
The New York Apartment Association’s super PAC spent more than $2.5 million supporting Cuomo’s campaign. After his loss, the group didn’t commit to a new candidate.
At this point, the organization is “just observing” as the lead-up to the general election takes shape, said Kenny Burgos, CEO of NYAA. The group remains concerned about Mamdani’s policies.
“It’s no secret that his No. 1 policy would be the nail in the coffin,” Burgos said.
Some real estate professionals have publicly supported Mamdani, though their campaign donations total a fraction of what Cuomo and Adams have amassed. In the latest round of donations, Mamdani reported more than $6,500 from people who indicated that they worked in real estate, construction, architecture or in a housing-related occupation, though most in that bucket described their job as residential brokers, nonprofit or public housing specialists or as self-employed.
One developer, who spoke on the condition of anonymity, is supporting Mamdani now that he is the Democratic nominee. The developer noted that being an Assembly member for a few terms likely isn’t adequate preparation to lead the city, but he’s hopeful Mamdani will surround himself with experienced people and get himself up to speed.
“I think he has a big learning curve, but I also think he’s a smart guy,” the developer said.
Although the developer doesn’t think Mamdani is trying to court the real estate industry — doing so could alienate his base — the candidate has shown that he’s open to its concerns.
“I’m sure he doesn’t want the industry’s support,” the developer said. “He does seem to be out trying to speak to everyone he can to understand what the issues are.”
Others similarly pray that, if elected, Mamdani will at least have an open ear. Rechler said that he hopes that if Mamdani becomes mayor, he won’t “completely reject the private sector” and will find ways to “harness its innovation, discipline, and capital.”
After Mamdani met with the Partnership, Adams took his turn with executives. Wylde described his speech as compelling, saying that the mayor framed the race in a way that many in the crowd have come to view it, as a fight against a movement and an “existential threat.”
