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arry Sternlicht, the chairman of Starwood Capital Group, has signaled that his firm is weighing a move out of New York City now that Zohran Mamdani has been elected mayor. In a CNBC interview, Sternlicht warned that Mamdani’s administration could transform the city into a “Mumbai‑style” environment where tenants feel empowered to refuse rent payments. “The far‑left gets really nuts and says the tenants don’t have to pay. Well, you can’t kick them out if they don’t pay,” he said, adding that a domino effect could lead to widespread non‑payment and a decline in property values.
Mamdani’s platform includes stronger eviction protections and a freeze on rent increases for stabilized tenants, but it does not exempt landlords from the consequences of unpaid rent. Sternlicht also linked potential public‑safety cuts to a mass exodus of businesses and residents. “If people feel like their kids aren’t safe on the streets, they will pull them out of school and they will leave,” he said. He noted that Mamdani had previously advocated defunding the NYPD, though he has since pledged to maintain current police staffing levels.
Starwood Capital, which owns commercial and residential properties across the city—including two luxury hotels near the Brooklyn Bridge and the Museum of Modern Art—has about 7,000 employees in 19 U.S. and international locations. The firm’s New York offices, located in Midtown, have already seen staff express interest in relocating. Sternlicht declined to elaborate on the company’s long‑term plans beyond the interview.
Large corporations fear Mamdani’s proposed tax changes: a hike in the state corporate tax rate from 7.5 % to 11.5 % and a flat 2 % tax on individuals earning $1 million or more annually. Wealthy New York residents, concerned about both public safety and the new tax regime, are increasingly looking to move to suburban communities. Two Compass realtors, Zachary and Heather Harrison, reported a surge in calls from Manhattan buyers who now see Westchester County as a viable alternative. Westchester does not impose a resident income tax (except in Yonkers), making it attractive to high‑earning families. The Harrisons noted that bidding wars have escalated, with homes selling $500 k above asking and listings receiving 50–75 showings, despite inventory dropping more than 70 % since the pre‑COVID era.
Joy Kim Metalios, managing director of the Metalios Team at Houlihan Lawrence in Greenwich, Connecticut, also sees a spike in demand from city residents. “We’re getting people who were planning to move out in a year or two but are now accelerating that process,” she said. Sellers in Greenwich are attempting to capitalize on the situation, though inventory remains tight. Metalios highlighted that some sellers are hoping to fetch higher prices as New York residents leave, while buyers are eager to secure homes before the market saturates.
In summary, Sternlicht’s concerns about Mamdani’s policies—particularly the potential for increased eviction protections, rent freezes, and public‑safety cuts—have prompted a reevaluation of Starwood’s presence in New York. Meanwhile, high‑income residents and large corporations are weighing the implications of new tax proposals, leading many to consider relocating to nearby suburbs such as Westchester and Greenwich, where tax advantages and perceived safety may outweigh the benefits of staying in the city.
