New York City’s business climate under Mayor Zohran Mamdani remains under scrutiny amid scrutiny of several billionaires. Yet, Airbnb has reportedly reaffirmed its commitment to the city by purchasing a six-storey building at 281 Park Avenue South in Manhattan’s Gramercy neighbourhood for $81.5 million. A New York Post report claims that the 42,500-square-foot Beaux-Arts building will serve as a hub for its New York-area workforce of more than 600 employees. This move by Airbnb comes even as several prominent business leaders have warned that companies and high-income taxpayers could expand elsewhere in response to Mamdani’s policy proposals, which include a rent freeze for rent-stabilised apartments.In a statement to AM New York, Airbnb CEO Brian Chesky noted that the investment reflects the company’s long-term plans for the city. He said, “New York City has been part of our story since the earliest days of Airbnb. This building reflects our long-term commitment to the city and will be home to one of our largest employee hubs outside of San Francisco. We’re excited to keep investing in the city and the people who make it extraordinary.”
Anthrote debate’
Alongside Airbnb’s investment, AI company Anthrong at 330 Hudson Street in Manhattan. This will significantly expand its presence in the city.According to the company, Anthrod of the year, growing from fewer than 500 employees at the beginning of 2026 to more than 1,000. The office has capacity for around 1,700 desks, and the company is hiring across research, engineering, policy, sales and operations.Anthro”New York is one of the main hubs for how AI is being put to work, and Anthroial institutions, media companies, and cultural organisations that help define the city. Doubling our team here and deepening our long-term commitment to the city will allow us to sit closer to that work, and to the people driving it forward.“The AI startup has also previously announced a broader $50 billion investment in US AI computing infrastructure, including data centre projects in New York.
Expansion comes amid debate over New York’s business climate
The announcements come as several executives and investors have publicly expressed concerns about New York City’s economic environment.Last year, billionaire investor Bill Ackman said, “You’re going to see the flight of businesses from New York,” if Zohran Mamdani became mayor.BlackRock CEO Larry Fink also recently said the company could shift more of its US investment elsewhere if business conditions deteriorate.Speaking at the Aspen Ideas Festival, Fink said, “I’m worried about New York. We have globally about 25,000, 26,000 employees. We have about 8,000 in New York. So we have systematically grown. If the environment gets weaker in New York City, like other businesses, we will think about not moving, but even in deploying more of our US resources to a different location.”“So if we lose 5,000 1-percenters, that’s gonna offset all the other stuff this administration is going to do. And the look of it, we’re gonna lose the 5,000 or more,” Fink added.JPMorgan Chase CEO Jamie Dimon has also warned in his annual shareholder letter that rising taxes and regulatory pressures could affect New York City’s competitiveness. Citadel founder Ken Griffin has similarly urged business leaders to “fight for their city” while raising concerns about the city’s policy direction.Amazon founder Jeff Bezos has also criticised New York City’s policy debate. In an interview with CNBC, Bezos said that if Amazon were run like the city’s school system, “your packages would take weeks to reach.” He also said, “You could double the taxes I pay, and it’s not going to help that teacher in Queens.” Mamdani responded to Bezos’ remarks on X, saying, “I know a few teachers in Queens who would beg to differ.” Canadian businessman Kevin O’Leary also later joined the debate, describing New York City as “a complete disaster.”
