Have to give Mamdani the 'opportunity to succeed': Bruce Mosler

Key Concepts

• New York City Real Estate Market: Discussed in the context of commercial property management, business climate, and potential policy impacts.
• Zohran Mamdani: A figure whose potential policies are a point of concern and discussion among business leaders.
• Crime and Quality of Life: Identified as a top priority for New Yorkers and a factor influencing business decisions.
• Affordable Housing and Residential Conversions: Strategies to retain the workforce and address housing shortages.
• Commercial Property Demand and Occupancy: Data and trends indicating a strong market, especially post-COVID-19.
• Hiring Veterans: A business strategy advocated for its benefits in collaboration, innovation, and leadership.

Commercial Real Estate in New York City and Policy Concerns

Bruce As Was, Chairman of Cushman & Wakefield, which manages approximately 92 million square feet of commercial property in New York City, discussed the current state of the city's property market. A significant point of discussion revolved around Zohran Mamdani and the potential impact of his policies. As Was expressed a desire from business leaders to work with and educate Mamdani, emphasizing that New York City's economic engine is fundamentally driven by real estate and business. He stressed the importance of understanding that decisions are not solely made by one individual but also by the state.

Priorities for New Yorkers and Business Leaders

Crime was highlighted as a perennial top concern for New Yorkers, ranking among the top three issues. As Was stated, "CRIME IS ALWAYS NUMBER ONE OR TWO OR THREE ON THE LIST AND HAVING THE RIGHT COMMISSIONER EMPOWER THEM TO MAKE THE DECISIONS I THINK THAT IS A CRITICAL PART OF THE SAME CITY TO SAVE STREETS." Quality-of-life issues, which have seen improvement under Mayor Eric Adams, were also mentioned. The discussion touched upon proposals that may not be legally feasible, such as free bus services, referencing MTA guidelines and the independent positions of governors. A new survey by Jail Partners indicated that 765,000 New Yorkers might leave the city under Zohran Mamdani, raising concerns about the city's future.

New York's Strengths and Business Scalability

Despite concerns, As Was urged a measured approach, stating, "LET'S WORK WITH HIM AND GIVE HIM AN OPPORTUNITY TO SUCCEED." He emphasized New York's unique strengths, including its large, deep, and highly educated labor pool, positioning it as a place where businesses can scale effectively, unlike locations like Florida. New York is described as the financial and tech capital of the world, with the potential to remain so. This perspective addresses the fears of many business leaders in banking and real estate regarding the city's business climate.

Collaboration and Decision-Making

As Was echoed the sentiment that "IT TAKES A VILLAGE TO MAKE SOME OF THE DECISIONS THAT HE WANTS TO MAKE AND THEY CANNOT BE MADE ALONE." He aligns with the approach of working collaboratively to navigate these issues.

Affordable Housing and Residential Conversions

The conversation shifted to residential conversions, an area that has seen activity under Mayor Adams. As Was expressed that the intention is to accelerate affordable housing initiatives, which are crucial for retaining the workforce in New York, given a low vacancy rate. He noted approximately 4 million square feet of conversions currently underway, with the potential for that number to double. This is seen as a critical component of keeping the workforce in the city.

Commercial Real Estate Demand and Occupancy Trends

As Was provided data on the commercial real estate market, indicating a strong performance. The city is projected to eclipse its ten-year average in demand, with 29 million square feet leased year-to-date, compared to 32 billion square feet for the entire previous year. This year is expected to exceed pre-COVID-19 levels. Occupancy rates are around 80% across the board, with locations near transportation hubs reaching 90% occupancy. Even buildings with 75% occupancy are considered fully occupied due to flexible work arrangements. The Mayor's office has facilitated significant development and redevelopment, citing the JP Morgan building on the East Side as an example. New York is positioned favorably compared to other gateway cities.

Hiring Veterans: A Strategic Imperative

A significant portion of the discussion focused on the initiative to hire veterans. Cushman & Wakefield has been recognized as a top ten military employer for four consecutive years. As Was strongly advocates for hiring veterans, citing their diverse backgrounds, high education levels, and essential skills. He stated, "IT IS CRITICAL IN MY OPINION TO HIRE VETERANS BECAUSE IT COME FROM ONE OF THE MOST DIVERSE WORKFORCES IN THE WORLD BUT ALSO THEY ARE HIGHLY EDUCATED." Veterans are described as possessing strong collaboration and innovation skills, along with leadership qualities uniquely suited to building business culture and improving the bottom line. The message is clear: "WE SAY HIRE VETERANS TO IMPROVE YOUR BUSINESS NOT FOR CHARITABLE PURPOSES." This approach contributes to a better employment rate for veterans, as they are considered highly effective employees.