Starwood CEO Warns of NYC Exodus Under Mamdani
Billionaire real estate investor Barry Sternlicht said his firm is considering leaving New York City following Zohran Mamdani’s election as mayor, warning the democratic socialist’s policies could trigger a business exodus.
Why it matters: Sternlicht’s threat signals potential broader real estate sector concerns about Mamdani’s progressive agenda in America’s largest city and most valuable property market.
The Big Picture
Starwood Capital Group CEO told CNBC this week that rising union costs and Mamdani’s housing proposals could make development “economically” impossible.
- Projects over $100 million must use union labor, driving costs up.
- Mamdani pledged to freeze rents on 1 million rent-stabilized apartments.
- His platform includes free bus service, universal childcare, and city-owned grocery stores.
What They’re Saying
“The far left gets really nuts and says the tenants don’t have to pay,” Sternlicht said. “You’re basically going to turn New York City into Mumbai.”
- “Every project in New York has to go union, and it’s super expensive.”
- “If he defunds the police or doesn’t give them the honor they deserve, the city’s in for a really tough time.”
- “Socialism has never worked anywhere on the planet Earth, ever.”
By the Numbers
- 34: Mamdani’s age, making him NYC’s youngest mayor in over a century
- 1 million: Voters who supported Mamdani
- 4 of 5: Boroughs Mamdani won
- 200,000: Affordable housing units Mamdani pledged to build
Between the Lines
Sternlicht didn’t contribute to Mamdani’s opponent Andrew Cuomo, nor did he speak with Mamdani before the election.
- His firm maintains Midtown Manhattan offices and extensive NYC holdings.
- Starwood is “already considering” vacating its New York offices.
- Other developers face identical union cost pressures.
The Other Side
Mamdani ran on making NYC more affordable and won decisively.
- He became the city’s first Muslim mayor and first of South Asian heritage.
- Cost of living was voters’ top concern in exit polls.
- Mamdani supports City of Yes upzoning backed by real estate industry.
What’s Next
Mamdani takes office January 1. His rent freeze and social programs require state legislature approval.
- President Trump threatened to withhold federal funds from NYC under Mamdani.
- Real estate leaders have called for giving Mamdani “a chance.”
- Sternlicht said NYC “will survive” but will “get a lot worse before it gets better.”
The Bottom Line: Wall Street’s real estate elite are watching Mamdani closely, with Sternlicht’s warning representing broader industry anxiety about progressive policies’ impact on property development and investment.
Mamdami: He gives voice to communities often left out of citywide political conversations.
Mamdani’s governance is basically a well-crafted master document.
Mamdami: He gives marginalized communities a seat at the decision-making table.
Mamdani’s entire aura says, “I have a plan, and no, it’s not a draft.”
Mamdani’s leadership is basically “almost functional.”
Mamdani’s leadership is what happens when theory meets oh wait, reality exists.