As Adams Ends Mayoral Campaign, NYC CRE Shifts To Cuomo

Mayor Eric Adams pulled the plug on his reelection campaign Sunday, bowing out of the 2025 race just five weeks before New Yorkers head to the polls — and as the city’s commercial property market faces some of its toughest questions in a generation.

Adams, who had been running as an independent after skipping the Democratic primary, announced his exit in a video posted on social media. He blamed the shadow of a now-dismissed federal case and dwindling fundraising after being refused matching funds by the city, saying he couldn’t carry on his campaign. 

His name will remain on the ballot because the filing deadline has passed, but his departure leaves the field to Democratic nominee Zohran Mamdani, independent Andrew Cuomo and Republican Curtis Sliwa.

The decision caps months of political freefall for a mayor who once declared, “I am real estate.”

The city benefited from having a pro-real estate mayor, Real Estate Board of New York President James Whelan told Bisnow in a statement, saying that Adams’ tenure had “resulted in impressive achievements in several areas including crime reduction, job and housing creation and many land use changes that will guide the city’s growth moving forward.”

Adams remained popular with the commercial real estate industry amid political turmoil, but even developers who supported him through that turbulence are now pivoting.

“I like Eric. He did a good job,” Jeff Gural, chairman of GFP Real Estate, told Bisnow Monday morning. “After Andrew lost, all of us shifted and thought that our best hope of defeating Mamdani was Eric. But then those indictments came out and took the momentum out of his campaign.”

For real estate, Adams' decision removes an incumbent who has prioritized housing policy, instead putting the industry’s fate in the hands of two men with starkly different visions. For owners already struggling with debt maturities for rent-stabilized housing or with 15% office availability, the outcome of the race could decide whether values stabilize or slide further.

Cuomo, the former governor, is running as the industry’s preferred alternative because of his status as a known quantity. He has promised to deliver 500,000 new homes, restore predictability to property taxes to keep capital flowing, partner with faith-based groups to unlock land, and cut through City Hall red tape to boost housing production. 

Mamdani, a Democratic Socialist assembly member from Queens, stunned the city in June when he beat Cuomo by a wide margin in the Democratic primary. He has vowed to freeze rents in 1 million stabilized apartments, borrow $70B to build public housing and go after negligent landlords.

“People are nervous,” one developer told Bisnow in June.

Days later, Benefit Street Partners allegedly walked away from a $300M Manhattan hotel portfolio, citing the prospect of a Mamdani administration as “un-underwriteable risk.”

Mamdani’s policy promises are concerning because they will likely disincentivize development, real estate service provider Rlty Co. CEO Briggs Elwell said.

“You need more supply to offset the increase of demand,” he said. “You can't just fix it by changing how rents are handled. You have to change it by having more supply.”

The threat of capital flight hasn’t killed any deals so far, Integritas Capital founder and Managing Partner Stephen Palmese told Bisnow. But it has led to paralysis for CRE decision-makers. 

“If you look at most developments, there are many people who are sidelined until there's more visibility into what's going to happen with this administration,” he said.

The stakes extend beyond corporate balance sheets. Commercial property taxes account for roughly 40% of city revenue. How the next mayor approaches assessments, conversions and climate mandates will shape not only landlords’ cash flow but also New York City’s fiscal health.

Cuomo’s campaign and independent groups supporting it have raked in millions from real estate donors, including from Vornado’s Steven Roth, RXR’s Scott Rechler and former Mayor Michael Bloomberg, as well as endorsements from construction and labor unions.

The city’s power brokers have been trying to tilt the odds away from Mamdani. Earlier this month, Related Cos. CEO Jeff Blau convened fellow executives to urge Adams to step aside and consolidate support behind Cuomo. 

The industry has an opportunity to influence policy starting now, Compass Vice Chair Adelaide Polsinelli said.

“It will be essential to closely monitor policy developments, assess potential investment risks and stay engaged with industry groups to understand and influence emerging regulations,” she said. “The stakes have never been higher for CRE in NYC.”

What happens next is up to voters. Early voting begins Oct. 25, and Election Day is Nov. 4. For developers, lenders and investors, the weeks ahead will be an exercise in waiting — and wondering which version of New York they’ll be underwriting come January.

Sasha Jones and Mark F. Bonner contributed to this story.