Lawmakers in Albany are reviewing Governor Andrew Cuomo’s proposed budget, and real estate insiders are debating what impact it will have on commercial property in New York City.
Investment sales broker Robert Knakal, chairman of Massey Knakal Realty Services, says the short-term pain would be outweighed by beneficial effects, in this week’s Insights from The Real Deal (see video above).
“The positive benefits coming from these budget cuts are very, very significant, the number one being that the governor can keep to his pledge of a cap on real estate taxes,” Knakal said. Such taxes drive down property values, he says.
But he noted that there were downsides to the cuts as well, including worker layoffs which impact the individuals and add to the available commercial office space.