Real Estate Industry Reacts to Mayor Eric Adams’ Indictment

Since taking office, Mayor Eric Adams has positioned himself as a friend of the real estate industry.

He wanted his buildings department to “roll out the red carpet” for developers, fostering a “build, baby, build” mentality. He told real estate professionals that he understood their plight, having supplemented his income by working as a residential broker in the 1990s.

Industry titans have poured money into his campaign coffers, enamored by his moderate politics, pro-development positions and his tough-on-crime persona.

While other elected officials avoided looking cozy with the industry, Adams sidled up to it. At the 2020 Real Estate Board of New York gala, which was snubbed by fellow politicians, then-Brooklyn Borough President Adams bristled at the idea that schmoozing with developers was politically toxic.

“We can’t divide the city,” he told The Real Deal at the time. “I’m not going to leave one stone unturned, one room unvisited to bring this city together.”

Now, the industry is faced with the possibility of losing its ally in Gracie Mansion. Adams has been indicted on federal charges that he accepted bribes and fraudulent campaign donations, orchestrated by his own staffers and Turkish operators, with his knowledge and approval. In return, Adams allegedly intervened to help speed along his benefactors’ construction projects.

In the immediate aftermath of the news, industry leaders expressed concern about how the city government would function. The charges throw into doubt the fate of the mayor’s priorities, including his signature housing initiative.

Adams maintained on Thursday that the case will not affect his “day-to-day” as mayor, although with resignations by his top aides and commissioners mounting, it is hard to see how. It is also unclear if he will be able to stay in office.

“The cloud of all this has to be paralyzing to the city,” said one developer, speaking on the condition of anonymity. “How can you get as much done when you are being investigated?”

One real estate professional posited that City Planning Director Dan Garodnick will be thrust into the driver’s seat to negotiate passage of the City of Yes for Housing Opportunity. With the administration reeling, the City Council has ample leverage to gut the proposal. Provisions to eliminate parking requirements, legalize accessory dwellings and allow taller buildings near transit are all targets.

Adams has said he won’t resign, but lots of his appointees already have and other elected officials are calling for him to follow suit. Gov. Kathy Hochul has the authority to remove him from office, in which case Public Advocate Jumaane Williams would take over as mayor for three months until voters choose a successor in a nonpartisan election.

Several challengers had already lined up for the June 2025 primary, including City Comptroller Brad Lander, his predecessor Scott Stringer, and state Sens. Jessica Ramos and Zellnor Myrie. All are more liberal than Adams and not obvious contenders for the real estate industry’s support.

Adams pushed for a number of industry priorities in Albany, including a replacement for the expired tax break 421a.

“Adams is good for the city and good for real estate,” the developer said. “If he is forced out, the alternatives don’t seem as good.”

The developer expressed hope, however, that sentiment in favor of building housing is widespread enough to endure even if Adams doesn’t.

“Don’t panic. There are enough smart people who realize you need more housing,” the developer said.

Former Gov. Andrew Cuomo has reportedly considered throwing his hat into the ring of candidates, although his spokesperson told Politico Thursday that he has no plans to. In interviews with TRD this month, some of the city’s biggest developers and landlords called Cuomo a viable choice for the industry, even if he signed the 2019 law that sent rent-stabilized building owners into shock.

Adams, for his part, says he’s going nowhere and will fight the charges. In a video response to the indictment, Adams cited his calls for the Biden administration to help with the influx of migrants to the city.

“When the federal government did nothing as its broken immigration policies overloaded our shelter system with no relief, I put the people of New York before party and politics,” the mayor said. “But I have been facing these lies for months, since I began to speak out for all of you and their investigation started — yet the city has continued to improve.”

Actually, the federal investigation started two years before it came to light last October, well before Texas began busing migrants to New York.

Others in the mayor’s orbit are repeatedly referenced in the indictment, though they are not named and have yet to be charged. Close allies of the mayor have also been subpoenaed in federal investigations that do not appear to be mentioned in the indictment.

The real estate professional who spoke anonymously called Adams’ legal troubles “self-inflicted.”

“The real estate community wanted him to succeed, so I think there is disappointment,” he said. “But when you look at people he recruited, I don’t think people are shocked.”

Last week, developer Bruce Teitelbaum designed and paid for an ad supporting Adams, underscoring the mayor’s support for the Jewish community, Politico New York reported.

“Eric has a long record of real friendship and support for people in the Jewish community,” Teitelbaum told TRD at the time.

Reached Thursday morning, after news of the indictment broke, Teitelbaum reiterated his support for the mayor.

“Real friends walk in when the rest of the world walks out,” he said.