NYC’s World Cup Windfall is Looking Shaky

The World Cup is quickly approaching — but it’s so far unclear whether the tournament will be a boon for real estate.

Early predictions from FIFA estimated the month-long soccer competition would yield more than $3 billion worth of economic activity in the New York City area, however The City reported that some city officials are now saying the expense of hosting could outweigh the earnings.

Projections from Comptroller Mark Levine show the World Cup is expected to boost tax revenue by $55 million — a number his office expects to be offset by an additional $70 million in spending on security and safety costs.

As the tournament’s June start approaches, some segments of the industry — primarily hotels — are already seeing lackluster signs, as room bookings for the weeks of the World Cup are trailing behind the same period last year.

Property owners in New York are also constrained by strict laws regulating short-term rentals, and city officials have so far rejected requests from groups such as the Partnership for New York City to suspend limits.

In a report prepared for Airbnb by consulting firm Deloitte, hosts on the platform across the U.S. are projected to bring in more than $150 million in revenue during the tournament, and in the New York and New Jersey area, guests renting with the company are expected to add more than $150 million in value to the GDP. Yet, with stringent laws around short-term rentals in the city, it’s likely surrounding areas with lighter regulations will end up reaping the benefits.

However, the tournament’s impact on the city’s commercial real estate and retail sectors is harder to quantify, especially with three months left to go until the first match kicks off.

Traditionally, sporting events like the World Cup tend to go hand-in-hand with opportunities to lock in deals with short-term commercial leases and develop projects and infrastructure near stadiums, according to Colliers, which in the lead up to the event, has been releasing reports about real estate trends in cities hosting matches, including Philadelphia and Boston. (It hasn’t yet published a report on New York City.)

There is one small real estate victory for the city, though only tangentially tied to the World Cup: CEO of the New York-New Jersey host committee, Alex Lasry, dropped $21 million on an Upper West Side apartment in December.

What we’re thinking about: The World Cup’s effect on real estate in the city is still an open question, and we’re looking for answers. If you’re negotiating leases, involved in construction or development projects or working on anything else related to the tournament, please send thoughts to sheridan.wall@therealdeal.com.

A thing we’ve learned: More than 22 percent of the 15,500 co-op and condo properties in New York City are designated as landmarks, according to the Council of New York Cooperatives & Condominiums, which launched its data dashboard on Thursday ahead of the city’s Open Data Week.

Elsewhere…

— An overpopulation of deer has led to a “nasty, gruesome” problem on Long Island, according to Newsday, which reported a 75 percent uptick in the number of cars striking deer between 2016 and 2024. Suffolk County had the highest number of collisions, logging 928 in 2024.

— Mayor Zohran Mamdani’s administration plans to roll out a new office geared toward street vending, the New York Times reported. Mamdani will tap activist Carina Kaufman-Gutierrez to lead the office, housed within the Department of Small Business Services.

Closing time

Residential: The largest residential sale on Friday was $9 million for 498 West End Avenue, 9A. The Upper West Side condo is 3,800 square feet and last sold on the market in 2016 at a greater price of $9.3 million. Douglas Elliman’s Ann Cutbill Lenane has the listing.

Commercial: The largest commercial sale was $96 million for 204-207 West 96th Street. The site of the Roman Catholic Church is being sold to Rockefeller Group and Atlas Capital Group with the plan to develop 10,000 square feet of mixed-income housing, per reports.

New to the Market: The highest price for a residential property hitting the market was $14.5 million for 38 East 63rd Street. The Lenox Hill townhouse is 8,700 square feet. Adam Modlin of the Modlin Group has the listing.

Breaking Ground: The largest new building permit filed today was for a 147,785-square-foot, 10-story, mixed-use building at 100 Essex Street on the Lower East Side. Paul Carr of S9 Architecture is the applicant or record.

— Joseph Jungermann