What Mamdani’s Election Means For NYC Commercial Real Estate
Democratic socialist and New York City Mayor Zohran Mamdani’s election in November sparked strong and varied emotions in the city’s commercial real estate sector.
Reactions in CRE were across the board, ranging from fears that Mamdani would be bad for business and fuel the exodus of the wealthy to hotspots like Miami, to calls to “give him a chance.” President Donald Trump, who made his name in NYC CRE, recently said he’d “be cheering for him” despite previously decrying Mamdani as a “communist lunatic.”
Fanning concerns for the industry is a progressive Mamdani agenda that proposes rent freezes and free public transit. These and other measures have increased fears of hiked property taxes and reduced tax incentives in the already fiscally strained city.
Steve Thompson, a principal in the NYC commercial property tax office of global tax services and software provider Ryan, said now is the time to plan, not panic. A good first step, he said, is to engage the services of a tax adviser like Ryan with expertise in the nuances of the city's property tax regulations.
“There is potential for a lot of change under the new mayor, but governing is going to prove a lot harder than getting elected,” Thompson said. “Proposals are going to take a while to implement, and we may not see any of them fully fleshed out until 2028 at the earliest. It's going to be a slow process because change is very difficult.”
That will give the CRE industry time to monitor, anticipate and react to the new administration’s agenda. Thompson added that some of Mamdani’s initiatives might potentially benefit CRE.
"If Mamdani were to make the system fairer, it could open the door to streamlining the process by moving from a multiyear assessment to an annual one,” Thompson said. “Simplifying the system could also allow for lower tax rates and increased fairness across the board.”
But that sort of speculation is all in the future. For now, Thompson said, CRE professionals should take steps to protect their interests by working with a tax expert to carefully review their current assessments and advocating for a pro-business agenda.
Be Hypervigilant
With the NYC mayor holding only limited authority to raise taxes unilaterally, Mamdani might turn to property-related revenue streams to cover budget shortfalls. His platform included shifting property tax burdens to wealthier neighborhoods and potentially raising rates on high-value properties.
“If they aren’t already, CRE owners should be modeling scenarios for their increased tax liabilities and adjusting their cash flow projections accordingly,” Thompson said.
Ryan can help clients forecast their taxes five to 10 years into the future, an exercise that Thompson called “extremely important” because property tax is the second-largest annual expense for a property outside of debt service.
CRE owners should also mark the calendar for Jan. 15, 2026, when the city publishes its annual tentative assessments for commercial properties.
It is important to “stay hypervigilant” when the new values come out and for owners to appeal their properties every year, Thompson said.
“Doing so can mitigate tax increases and is especially critical for office and retail properties facing declining valuations,” he said. “This is where a true tax partner really adds value. We’re here to support clients with this process.”
Advocate And Abate
Thompson encouraged property owners and developers to engage in policy advocacy by joining industry coalitions to help influence legislation and ensure CRE interests are represented. He added that Ryan’s legislative affairs team will continue to closely monitor activity at City Hall and advocate for reforms that make the system fairer.
Commercial property owners in the city should also take advantage of existing tax abatement programs. These can include the Industrial and Commercial Abatement Program, which offers property tax abatements for up to 25 years for eligible industrial and commercial building construction projects.
“I would jump on these opportunities as soon as possible because there is no guarantee they are going to continue into the future, and, unfortunately, you're probably going to have to budget for higher taxes,” Thompson said.
Taxpayers can also prepare for potential reductions in abatements by exploring alternative funding sources, such as green building credits or federal programs tied to sustainability and housing.
Owners and developers considering office-to-residential conversions should still be able to take advantage of statewide programs like 467-m, which adopted the Affordable Housing from Commercial Conversions Tax Incentive Benefits program, and 485-x, which provides 35 to 40 years of tax exemptions for new builds that contain 20% to 25% affordable units. However, Thompson noted that these programs include strict wage mandates and permanent affordability rules that must be factored into budgets.
“Those doing conversions will need to be very creative in terms of what credits and incentives they go after,” he said. “One of the things Ryan advocates for is historic property tax credits because they can enhance the income stream of a property and the profitability of a conversion. But people will have to look at the full menu of options available to them and then very thoroughly vet their tax modeling to make sure it's accurate.”
Find New Revenue Streams
Finally, owners should prepare for the impacts of one of Mamdani’s signature platforms: a proposed rent freeze for stabilized units. If this comes to pass, operating margins will be squeezed, which means owners should consider exploring operational efficiency improvements and alternative revenue streams.
“The unintended consequence of a rent freeze is that the property immediately becomes less valuable because a buyer is buying the future income stream of that asset,” he said. “When you freeze the income and expenses go up, net operating income goes down, and owners and operators are going to run out of money. It then becomes a question of ‘do I put on a new roof, or do I defer that maintenance to the future?’”
The time to prepare for these potential outcomes is now, Thompson said, and Ryan can help commercial property owners stay ahead of reforms under the new administration while minimizing adverse business impacts. Ryan’s services include:
- assessment appeals and litigation support
- incentives optimization guidance
- scenario modeling for tax policy changes
- rent freeze impacts and compliance planning
- legislative monitoring with real-time updates from City Hall and Albany
Thompson also urged people to get involved with advocacy efforts to make sure the Mamdani administration hears the concerns of the CRE community.
“If you don’t have a seat at the table, you’re likely on the menu,” he said. “When owners and operators fail to speak up and engage in the reform process, they risk ending up with outcomes they didn’t help shape — and won’t be satisfied with.”
This article was produced in collaboration between Ryan and Studio B. Bisnow news staff was not involved in the production of this content.
Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.
