Rechler, Steiner, Cestero tapped for Mamdani’s business council

Three real estate leaders snagged a seat at the table to advise Mayor Zohran Mamdani’s administration on policy and other matters, part of a new council of 15 executives across industries.

RXR chairman and CEO Scott Rechler, Community Preservation Corporation CEO Rafael Cestero and Steiner Studios chairman Doug Steiner will have the mayor’s ear on economic growth, and all three are eager to bring the industry’s policy perspective to the table.

The industry’s skepticism of the Mamdani administration persists among some in the real estate industry, though its embrace of private development as a means to boost the city’s housing supply has eased some concerns. Increasing housing production is a priority for all three real estate executives who hope to advise the mayor and Deputy Mayor for Economic Justice Julie Su.

Rechler and Steiner aim to bring ideas on how development can be faster and cheaper to the newly formed council, announced Thursday, just weeks after the mayor dissolved a philanthropic board populated by real estate and finance leaders.

“We have to really look at the cost of development, not just what it costs to rent, but what it costs to develop and how we can cut some of those costs so that the rent can drop on its own as a function of that,” Steiner said. “We need to drive down construction costs and I think that can be done through regulatory reform, both in terms of zoning and building codes.”

The Mamdani administration has already taken steps to capitalize on political buy-in for more YIMBY initiatives, launching its SPEED and LIFT task forces to expedite affordable housing development, while his charter revision commission put forth ballot measures on faster permitting to streamline construction approvals.

The Department of Buildings is set to lead another task force starting in late 2026, aimed at overhauling building codes to facilitate new construction and upgrades by finding cost savings for developers, according to the mayor’s housing plan.

“I was impressed with the way they responded when the [Pfizer] situation happened,” Rechler said. “They could have very easily gone to a political positioning with the unions on needing to use all union labor, and I think they were very thoughtful and measured. The Deputy Mayor reached out to me about getting a better understanding of the difference between types of conversions.”

Developers have argued that 485x has hampered housing production by incentivizing projects of 99 units or fewer to avoid the wage floor for larger developments. Rechler, meanwhile, sees the 467m tax break for office-to-residential conversions as a key avenue for producing affordable housing in New York City.

“It’s also just being a sounding board,” Rechler said. “Even on communications, if there’s ways that he can communicate in a manner that resonates with the entire city without creating an anxiety with the business community, being helpful in trying to get that message out.”

Rechler plans to use his direct line to Mamdani to weigh in on the mayor’s approach to housing construction, including opportunities for office-to-residential conversions and public-private partnerships.

“Right after he was elected, I sat with him in a private meeting, shared our views and provided my insights,” Rechler told The Real Deal. “He came in well-informed, open-minded and had some conversation on what I’ve seen work and not work in other administrations. I had some specific concerns related to the rhetoric, some of the things that were going on in the campaign, and how it might translate into policy.”

Since the mayor took office eight months ago, many of the concerns about his agenda and its potential impact on the business community have proven to be overstated, according to Rechler, who said a “caricature” painted in the media and even the administration’s own rhetoric has clouded the reality.

“The economy’s thriving, the commercial leasing market is thriving, people were saying that people were going to flee New York and the reality is, we’ve seen an enormous influx of talent and the wealthy buying condominiums at record levels,” he said. “A lot of the anxiety and hyperbole that was being kicked around when he was elected has not really manifested itself into reality.”

Mamdani has also supplemented his relative newcomer status to the city’s political scene by carefully selecting, or in some cases retaining, talent to help him execute in City Hall while quelling concerns among some of the city’s business leaders. Rechler cited moves like naming Tony Shorris to run EDC and keeping Jessica Tisch at the helm of the NYPD as examples.

“The mayor has surrounded himself with a lot of people who are open to new ideas and want radical fast change,” Steiner said. “I’m not afraid to speak my mind and express ideas that are out of the box.”

Accessible administration

Before joining the mayor’s new council, Rechler found that despite his differing views and approach on certain topics, the current administration was accessible and receptive to his input.

“When there’s an issue they’re one phone call away, able to have a conversation and they’re responsive to it,” he said. “Even in cases where there may have been a disagreement, they related to me what they’re trying to do and we talk about how to address it in the short term and the long term.”

It’s hard to find total agreement with any mayor across the board, regardless of the political leanings or professional background they bring to the role, according to Steiner. While he differs from Mamdani when it comes to the overall approach, they share a common goal to create opportunity by building affordable housing. He also sees tax reform as a major barrier to new apartment buildings, one that will require the administration to overcome political hurdles.

“I didn’t agree with Bloomberg on everything, I’m not going to agree with this mayor on everything,” he said. “I don’t agree with myself on everything. No one’s 100 percent.”

Former Mayor Eric Adams, who has spent his time since leaving office working odd jobs in real estate, was largely considered a pro-business figure during his time running City Hall. But not all mayors have been as welcoming to the city’s top executives, as savvy as Bloomberg or as open to feedback as Mamdani.

“The de Blasio [administration] was in my opinion the worst at it, I think he made it clear that he didn’t have any interest in really engaging with the business community,” Rechler said. “What I’ve seen with the Mamdani administration and the mayor is that he wants to engage.”