New York City’s decision against former President Donald Trump isn’t just a court verdict; it’s a stark warning to businesses across the nation. The ruling has sent shockwaves through the business community, leading to significant economic repercussions for the city. High-profile investors, recognizing the unstable political climate, are reevaluating their stakes, choosing to protect their assets rather than risk involvement in a city that wields its power with such partisan force.
The business world buzzed with headlines as Grant Cardone, a respected investor, declared his withdrawal from potential investments in New York City. “We thought this year was the opportunity to come into Chicago, California, and New York City. I’ve been waiting for 40 years now to invest in that marketplace. I was completely confident this was the year to come,” Cardone expressed disappointment on “FOX & Friends”. “And when that ruling happened, it was like pencils down. Don’t touch it. Don’t go there.”
Amplifying the impact of his decision, Cardone took to Twitter to announce his strategy.
Dear Cardone Capital team,
Immediately discontinue ALL underwriting on New York City real estate. The risk outweigh the opportunities at this time.
Recent political decisions will continue to deteriorate price and benefit states that don’t have these challenges.
Focus on Texas… pic.twitter.com/nTdJ5d4dO5
— Grant Cardone (@GrantCardone) February 20, 2024
Kevin O’Leary from O’Leary Ventures echoed similar concerns, labeling New York as a “loser state” alongside California, due to their excessive regulations and high taxes. O’Leary pledged, “I would never invest in New York now. And I’m not the only person saying that.” This sentiment spread quickly among the business communities as more investors voiced their hesitations.
Adding weight to this growing resistance, investor Tony Seruga signified the severity of the situation with his own action plan. He announced a massive $2 billion divestment from New York City, attributing his decision to the troubling political landscape.
They still have no idea what they’ve done. What is that sucking sound? I do not want to cause any additional anxiety for my partners but our family office is working on pulling $2B out of NYC as cleanly as possible. A number of pension funds that have already abandoned ESG are… pic.twitter.com/zCAcD768Y1
— Tony Seruga (@TonySeruga) February 21, 2024
The city’s left-leaning officials, however, seem oblivious to the consequences of their actions. When Attorney General Letitia James was asked about concerns of businesses fleeing, she remarked, ““Last I checked tourism is up. Wall Street is doing just fine.” Similarly, Governor Kathy Hochul attempted to downplay the situation, assuring businesses that they need not worry. Yet, history has shown us that when faced with such disregard for balanced governance, people and investments do indeed move elsewhere.
While not every real estate investor will pack up and leave, those accountable to partners and shareholders will think twice about increasing their stakes in a city that seems more interested in political points than economic prosperity. This unfolding scenario is a telling example of how the pursuit of political vendettas can ultimately harm the very communities leaders claim to serve. New York City, already experiencing an exodus from 2020, may not yet realize the full extent of the damage done by seeking retribution over the rule of law.