NYC's Future in Jeopardy as Billionaire Warns of Mumbai-Like Decline
Billionaire property magnate Barry Sternlicht has said his firm is considering moving out of New York following Zohran Mamdani’s election as mayor, claiming other companies are likely to do the same. Sternlicht, who chairs the global investment firm Starwood Capital Group, suggested that Mamdani’s policies would embolden tenants to stop paying rent and lead to a decline in the city’s economy.
In a conversation with CNBC, the billionaire drew a controversial comparison between New York and Mumbai, saying, “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. So, the neighbor finds out the neighbor isn’t paying, and they don’t pay, and the next guy doesn’t pay, and then you’re basically going to turn New York City into Mumbai.” He claimed that such an attitude would create a ripple effect, undermining the city’s rental market and property stability.
During his campaign, Mamdani pledged to strengthen tenant protections and extend the time it takes to process evictions. However, none of his proposed policies—including a rent freeze for stabilized tenants—would allow nonpayment of rent. Despite this, Sternlicht’s concerns reflect a broader apprehension among business leaders about the direction of the city under the new administration.
Sternlicht also warned that a decline in public safety could accelerate the city’s downturn under Mamdani’s administration. “If people feel like their kids aren’t safe on the streets, they will pull them out of school and they will leave. And if he defunds the police or he doesn’t give them the honor and prestige they deserve, I think the city’s in for a really tough time,” he told CNBC.
Sternlicht’s Starwood Capital Group is one of the world’s largest real estate investment firms, with $115 billion in gross assets under management. The company controls Starwood Property Trust and has financed several major developments, including The Greenwich by Rafael Viñoly and a 46-storey luxury residential tower in New York. The potential exodus of such a significant player from the city could have far-reaching economic implications.
While Mamdani’s policies aim to address issues of housing affordability and tenant rights, the concerns raised by Sternlicht highlight the delicate balance between progressive reforms and maintaining a stable business environment. As the city navigates these challenges, the coming months will be crucial in determining whether New York can continue to thrive or if it faces a period of significant upheaval.
