New York’s commercial real estate market is up under Mayor Mamdani

Businesses feared that New York’s democratic socialist Mayor Zohran Mamdani would “tax the rich” and drive firms away from the Big Apple, but 100 days into office, the situation is very different.

According to JLL, NY’s office vacancies fell 2.2% year-over-year to 13.5% during the first quarter of 2026, driven largely by a massive surge in leasing from AI companies.

While Mamdani’s administration is eyeing tax hikes to close a $5.4 billion budget deficit, a political standoff with New York State Governor Kathy Hochul is making the policies hard to implement.

Hochul has said she will not allow tax hikes for the wealthy and companies. She is facing a re-election this year.

However, it is notable that some corporations have moved to or expanded their second headquarters to the South.

JPMorgan CEO Jamie Dimon noted that while NYC remains a talent hub, it faces the nation’s highest corporate and individual taxes. Currently, JPMorgan employs more workers in Dallas than in New York, and Apollo Global Management is reportedly considering a second headquarters in states like Florida or Texas.

Despite these headwinds, Manhattan’s office market shows resilience. Recently, Nscale Global Holdings set a New York rent record of $320 per square foot at One Vanderbilt.