August 07, 2025
New York City’s commercial real estate world is no stranger to politics, but the recent Democratic primary win by Assemblyman Zohran Mamdani has industry dealmakers sounding the alarm — and suiting up for what could be a fierce showdown.
Mamdani, a self-proclaimed democratic socialist, has built his campaign around affordability, government intervention, and reining in large landlords and corporations. His proposals include everything from higher taxes on commercial players to public takeovers of private enterprise — ideas that many in the industry see as extreme and economically damaging.
While Mamdani’s win has sparked anxiety, some in the commercial sector are brushing off the panic. As one veteran developer put it, “His platform is so unrealistic, it’s only a matter of time before it implodes.” There’s a widespread belief that if elected, Mamdani would quickly learn that most of his radical goals are easier said than done.
At the same time, NYC’s office market is rebounding in a big way. According to a new CoStar report, leasing activity in Manhattan during the first half of 2025 has outpaced every year since the pandemic began — and even most years before it. Availability rates, once feared to be stuck in the 20% range, have now dropped to 14–15%, and trophy buildings like 550 Madison Ave are commanding rents north of $200 per square foot.
Major players aren’t holding back. Amazon signed on for over 330,000 square feet, NYU locked in more than a million, and Invesco took over 200,000 square feet downtown. Demand is especially fierce in prime areas like Park Avenue, Bryant Park, and Hudson Yards, where space is scarce and work-from-home fatigue has given landlords the upper hand once again.
Despite Mamdani’s rise, many developers are betting on the city’s economic resilience. They remember the worries when Bill de Blasio came into office — and yet, the market thrived. NYC’s commercial engine, with its deep pool of tenants and global allure, has proven it can weather political headwinds.
For now, Mamdani may be the front-runner, but the business community is mobilizing. Many are now backing current Mayor Eric Adams, who is running as an independent, in hopes of keeping a more business-friendly administration in place.
Because in this city, politics may shift, but prime square footage never goes out of style.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
