LISTEN: City, State Politics Dominate Real Estate Today

Politics continues to play a major role in New York real estate.

This week on The Real Deal’s podcast “Deconstruct,” hosts Hannah Kramer and Lilah Burke walk listeners through all that’s happening out of the city and state legislative bodies, much of which was highlighted during TRD’s NYC Real Estate Forum last week.

The annual event brought city administration officials Leila Borzog and Dina Levy to the stage. Both seemed willing to work with the real estate industry and engage on the issues.

But politics is a largely heated affair, especially for the industry. Discussions surrounding a $2 billion tax subsidy for Related Companies to build its next phase at Hudson Yards resulted in protestors disrupting CEO Jeff Blau’s session.

That wasn’t the only talk of protests at the event. There were also plenty of dissenters onstage railing against Gov. Kathy Hochul’s proposed pied-à-terre tax, the second-home levy that sparked a controversial social media video by New York City’s mayor outside of Ken Griffin’s $238 million penthouse. Opposition to the tax was the only thing that seemed to unite Brown Harris Stevens CEO Bess Freedman and Corcoran CEO Pam Liebman during a spirited residential panel.

(The tax was included in the New York State budget released a day later. Go figure.)

There was also disagreement about the 485x program, a tax abatement many developers don’t love. City officials seemed receptive to complaints about the program, but don’t appear to be in any rush to change it.

The policy discussion extended beyond the walls of last week’s forum. During a company earnings call last week, Vornado Realty Trust CEO Steve Roth went as far as to compare the “tax the rich” motto associated with the pied-à-terre tax to a racial slur, drawing a rebuke from many who didn’t appreciate the comparison.

As issues like the tax and 485x embroil the real estate scene, politics will continue to dominate the industry’s discussions.

This episode of “Deconstruct” also covers more in the week of real estate news: Japanese investors flooding New York City’s multifamily market and a massive judgment against a Bronx landlord.

Be sure to check out “Deconstruct” on Spotify, Apple Podcasts and wherever else you listen to podcasts.

— Holden Walter-Warner