Prime Highlights:
- Top real estate CEOs say there is no corporate exodus from New York City despite political concerns.
- Major companies are expanding their office footprints, signing long-term leases and moving ahead with large development projects.
Key Facts:
- Over 40 million square feet of commercial office leases are expected to be signed by the end of the year.
- Ken Griffin is moving forward with a 2-million-square-foot project at 350 Park Avenue, where he plans to employ more people in New York than in Miami.
Background:
New York City’s commercial real estate market is showing remarkable strength despite concerns surrounding Mayor-elect Zohran Mamdani’s political stance. Two of the city’s leading real estate executives, Scott Rechler of RXR and Bill Rudin of Rudin Management, say leasing activity and new development commitments prove that companies are not leaving, if anything, they are expanding.
Speaking at the Delivering Alpha conference, both leaders emphasized that major firms are securing long-term space at an unprecedented pace. Rechler noted that CEOs are committing to leases stretching into 2028, 2030 and beyond, describing today’s market mood as driven by “urgency.” He added that RXR recently signed a 300,000-square-foot lease with a law firm planning to move in 2029, which has already requested an additional 200,000 square feet following Mamdani’s election.
Rudin echoed the upbeat assessment, projecting over 40 million square feet of commercial office leases will be signed by year-end. He pointed to hedge fund billionaire Ken Griffin’s decision to move ahead with a massive new development at 350 Park Avenue, where Griffin is expected to employ more people in New York than in Miami, as clear proof that business confidence remains intact.
Both executives acknowledged that Mamdani’s rhetoric has sparked questions among global investors, particularly those concerned about policies tied to rent regulations and housing affordability. However, they said meetings with the Mayor-elect indicate a willingness to work with the private sector, especially on housing development and office-to-residential conversions.
Rechler and Rudin stressed that New York has repeatedly proven its resilience through crises ranging from 9/11 to the pandemic. With rising demand from young professionals, steady business growth, and major development funding in place, they believe New York City’s real estate market is still moving forward, even with some concerns overseas.
