Commercial investors in real estate value predictability. New York is a notoriously challenging environment for development, where the entitlement process and taxes are the most common culprits. Investors ask, what is the likelihood the project get approved and how long will it take, and what will the carrying costs be in terms of real property taxes?

New York also competes with low- to no state income tax states like North Carolina and Texas, which provide benefits for corporations and the employees they may relocate. Property taxes can be a tremendous disincentive to commercial development, especially where locations can be fungible depending on the use. Amazon, for example, does not need to locate its East Coast headquarters in Long Island City when Virginia can offer comparable educated and skilled work force for a fraction of the tax burden (not to mention an overall more business friendly environment).