The theory that businesses would ditch New York City in response to democratic socialist mayor Zohran Mamdani’s policy plans presently seems as real as city sewers teeming with alligators.
In the leadup to Mamdani’s 100th day in office yesterday, business leaders continued to warn that his proposed tax hikes for companies and New Yorkers making over $1 million would spur many to move to cheaper places (with inferior bagels).
But, so far, corporate America is actually expanding its New York footprint under Mamdani, according to research by real estate firm JLL:
The city’s office vacancies were 13.5% in the first three months of 2026, down 2.2% from a year before—while leasing by AI companies soared.JLL said that companies might be drawn to NYC’s unmatched talent pool: The city attracted 10% more early- and mid-career professionals from top schools than Florida did in the past year, according to its analysis of LinkedIn data.Exodus anxieties
JPMorgan CEO Jamie Dimon said this week that the higher cost of doing business in the Big Apple due to taxes could drive companies and talent to relocate to locales like Dallas, Texas, where the banking giant now has more employees than in NYC. And private equity behemoth Apollo Global Management said it’s looking to add a second HQ outside of New York City in Texas or Florida.
However, the tax fears might not materialize…as NYC’s mayor needs state approval for most tax hikes, which New York Gov. Kathy Hochul seems reluctant to grant.—SK