CNBC Television
Barry Sternlicht on Mamdani win: People and businesses will leave New York City
11/5/2025, 7:13:08 PM
Economic Summary
- Barry Sternlicht of Starwood Capital warns that Mayor Mamdani's perceived 'democratic socialism' and potential policing reforms could prompt residents and businesses to leave, pressuring commercial real estate and office demand in New York City.
- Safety and security are highlighted as primary drivers of residency and business location decisions; declines could cause school withdrawals, out-migration, and broader negative effects on local services and property markets.
- Expanding housing supply will be difficult without substantial government subsidies and more flexible union labor rules, which may slow new construction and perpetuate housing shortages.
Bullish
- New York City has historically recovered from political shifts and retains youth and vitality.
- Some firms may adapt or remain if public safety and policy stabilize.
Bearish
- People and businesses may leave New York City over safety concerns and policy shifts, reducing office demand.
- Commercial real estate faces downside as tenants reassess NYC exposure and some firms consider relocating.
- Housing growth may be constrained by the need for large government subsidies and inflexible union rules.
Bearish tickers
STARWOOD CAPITAL
STARWOOD CAPITAL
Bullish
Starwood still has a presence in New York City and could benefit if the city stabilizes; Sternlicht acknowledges the city's underlying vitality.
Bearish
Sternlicht says Starwood is considering moving some operations out of New York City and expects people and businesses to leave, which would hurt local commercial real estate investments.
People mentioned
MamdaniDiana OlickBarry SternlichtDomCuomo