Many real estate professionals had hoped that much of Zohran Mamdani's statements during his mayoral campaign last autumn were merely rhetoric. Some believed that cooler heads would prevail in reality. And even if policy for the industry might be stricter than, for example, under Eric Adams, the changes would still be acceptable.
This assumption, however, seemed significantly less likely late last week after the Rent Guidelines Board voted 7 to 1 on 25 June to freeze rents for one- and two-year leases in rent-stabilised buildings. The day began with unfortunate news when Christina Smyth, one of the landlord representatives on the Board, announced her resignation in protest. In her resignation letter, Smyth stated that the Rent Guidelines Board's decision had already been determined in the election campaign the previous year and that everything thereafter was merely theatre that could not alter the outcome.
The Board's vote, which will affect approximately 40 percent of the city's housing stock or one million flats, was not well received by the city's real estate representatives. James Whelan, President of the Real Estate Board of New York, expressed criticism, stressing that older rent-stabilised buildings already suffer from rising operating costs, but the Board had ignored these realities. This decision would lead to less investment in maintenance and repairs, accelerating the deterioration of the housing stock that millions of New Yorkers call home.
The rent freeze follows a recently proposed Pied-À-Terre tax by Mamdani, which has caused concern among many in the industry. Stuart Saft, a partner at the law firm Holland & Knight, predicted that this would lead to a reduction in development. He pointed out that the number of affordable homes had already been reduced, as some decision-makers apparently do not believe that developers should make profits or that everything should be done with union labour. This has already led to a low point in development, with only expensive condominiums being built.
Nevertheless, the preliminary data are not entirely negative. Between 25 May and 21 June 2026, according to Olshan Realty's luxury market reports, 131 contracts for properties priced at US$4 million or more were signed in Manhattan, slightly above the 126 contracts in the same period last year. However, it should be noted that the tax has not yet come into force and many of the signed contracts were already in progress weeks before Mamdani's announcement. The mayor has also advocated for more housing. New York could, among other things, learn from Culver City, California, which, in contrast to the rest of Los Angeles County, is characterised by a genuine, sustainable push for more housing.
In other news, there have been changes at the real estate association REBNY. It was announced that Jonathan Mechanic, a prominent lawyer and chairman of the real estate practice at Fried Frank Harris Shriver & Jacobson, will take over as REBNY chairman from Jed Walentas on 1 January 2027. The appointment of a lawyer instead of a broker or developer is a first for the association. In a statement, Mechanic expressed his honour and stated that he looked forward to serving on behalf of the members, the industry, and the city.
Furthermore, there were other personnel changes. Colliers was able to poach Justin Arzi from CBRE, where he had worked for nine years, to serve as Senior Vice President on the New York Capital Markets team. In addition, Colliers brought back experienced employee Seth Hecht, who had previously moved to JLL, to the company.
In the retail and hospitality sector, it was emphasised at a CO retail forum on 18 June that customers today seek the tangibility of physical retail, according to Rachel Abeles, Senior Vice President for Customer and Revenue Growth at Bloomingdale's. Customers do not just want to make transactions but experiences that are lively, warm, and original. As an example, she cited the reinvention of style on the fourth and fifth floors of Bloomingdale's, where Art Deco elements were interpreted in a modern way. This is also reflected in a new appetite for deals. Adirondack Capital Partners presented a report that examined 14 retail properties on prime shopping streets and found that SoHo was the most active market for property transactions in the US.
Beyond SoHo, other significant leases were concluded. Luxury jewellery brand David Yurman leased the entire retail condominium at 685 Fifth Avenue for a new 23,000 square foot flagship store. Bua Thai Ramen & Robata Grill signed a lease for 4,840 square feet at 21 East 16th Street, the original location of Danny Meyer's Union Square Cafe. Just one block away, Korean chef Jiho Kim leased 3,120 square feet at 21 West 17th Street.
