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Left-leaning gains in New York politics raise stakes for commercial CRE
The piece cites rent control, limits on rent-stabilized apartment changes, and a longer data center development moratorium as potential impacts.
Commercial Observer warns that gains for Democratic Socialist lawmakers in New York State Senate and Assembly elections could have serious ramifications for commercial real estate, including retail rent control and additional restrictions tied to rent-stabilized units.
The outlet also flags the possibility of a much longer moratorium on the development of large-scale data centers, while noting that some far-left plans across the Hudson could push affordable housing development.
On the financing side, Commercial Observer says tax-exempt commercial mortgage-backed securities, or CMBS debt, is gaining popularity because it can carry lower costs of capital than standard taxable CMBS and than affordable housing loans backed by Fannie Mae or Freddie Mac.
The article additionally points to the recently enacted 21st Century ROAD to Housing Act as a major federal housing measure aimed at fostering new construction, especially subsidized housing, while including skepticism from Toby Cobb of 3650 Capital that the act may do less than supporters expect.