The New York reits collapse after Mamdani’s victory for the mayor’s office in the primary

• The victory of Zohran Mamdani in the Democratic primaries for mayor of NYC has surprised the establishment.
• SL Green and Vorno Realty Trust lose more than 5% on Wednesday.
• Mamdani favors the freezing of regulated apartment rentals and the increase in taxes to the rich.
• The mayor would build 200,000 regulated apartments within ten years.

The real estate market of New York City has fallen on Wednesday after the victory in the primary for mayor of Zohran Mamdani. The actions of SL Green Realty (SLG) and Vorno Realty Trust (vno)both large real estate or reits investment trusts have lost more than 5% for the afternoon.

Although the Voting System in order of NYC preference will take until July 1 to be tabulated, Mamdani’s main competitor in the primary of the Democratic Party, the former governor of the New York State Andrew Cuomo, has already granted. Mamdani received 43.5% of the initial tabulation by the Associated Press, while Cuomo obtained 36.4%. And with the strong Democratic inclination of NYC, the winner of the Democratic primaries usually wins the choice in autumn.

What Mamdani means for SL Green and Vordo

Mamdani’s socialist inclinations are worrisome for the city’s real estate industrywhich greatly supported Cuomo. Mamdani has pledged to freeze the cost of regulated apartments in NYC, as well as build 200,000 housing more regulated in the next ten years. In addition, Mamdani has pledged to increase taxes to the rich to offer low -cost groceries, administered by the Government, as well as free child care.

“I think that [los CEOs] They are not very happy with the address in which [la carrera]. Terror is feeling, “said Kathryn Wylde, president of the Partnership for New York City, a non -profit organization that represents the main CEOs of NYC companies, in the CNBC Squawk Box program.” Mamdani presents an ideological argument that the solution to each problem is to spend more money from the taxpayers. “

Although SL Green and Vordo are mainly directed at commercial, non -residential properties, the market has decided that the increase in taxes and the probable economic policies of the mayor could move to a worsening of the real estate market if some tenants leave the city. However, most of these companies operate from a NYC already with high taxes due to the availability of labor talent and close to Wall Street, so there is no certainty that some tenant marks.

Mamdani has also said that it will reduce the regulatory bureaucracy for affordable housing units, but not for other development projects.

The five -day chart below shows that SLG and Vno actions began to fall last week before really moving down this week. The market had a premonition, since betting markets like Polymarket began to strongly favor Mamdani at the end of last week. In the last five sessions, SLG and VNO have lost approximately 9% and 10%respectively.

SLG and VNO shares performance in five days