Mamdani’s critics warned businesses would flee New York. Anthropic and Airbnb just expanded instead
For more than a year, prominent billionaires and business leaders have warned that New York City’s political climate could drive companies, investment and high-income earners elsewhere. Concerns over progressive policies, higher taxes and business regulations have fueled predictions that firms would increasingly favor lower-tax states.
Yet two of the country’s fastest-growing companies are making some of their biggest real estate commitments in New York. Artificial intelligence company Anthropic and home-sharing giant Airbnb have both announced major expansions in Manhattan, signaling long-term confidence in the city’s role as a business and technology hub despite the political debate.
Anthropic is dramatically expanding its presence in Manhattan by leasing the entire 16-story office building at 330 Hudson Street. The move represents a significant upgrade from its existing office nearby at 155 Sixth Avenue.
The AI developer expects to occupy all 16 floors of the building, providing enough space for approximately 1,700 desks. After beginning the year with fewer than 500 employees in New York City, the company now expects to have more than 1,000 employees there by the end of the year while continuing to hire across research, engineering, policy, sales and operations.
Anthropic says the city’s concentration of finance, media and enterprise customers makes it a critical location for the company’s growth.
“New York is one of the main hubs for how AI is being put to work, and Anthropic is in the middle of it as a technology partner to the financial institutions, media companies, and cultural organizations that help define the city,” Anthropic chief commercial officer Paul Smith told the New York Post in a statement. “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 company is actively recruiting for technical, research and commercial positions in the city as part of its broader expansion strategy.
In November, the company announced a $50 billion investment in American AI computing infrastructure, including data centers in New York. Locating a larger workforce in Manhattan also places employees closer to industries rapidly adopting generative AI, including financial services, legal firms, consulting, advertising, healthcare, media and enterprise technology.
Airbnb buys Manhattan office building for $81.5 million
Airbnb is also making a substantial investment in New York by purchasing 281 Park Avenue South in Gramercy for $81.5 million, according to The Wall Street Journal.
The six-story building will become a permanent hub for Airbnb’s New York-area workforce, which now exceeds 600 employees. The acquisition marks one of the company’s largest long-term real estate commitments outside its San Francisco headquarters.
CEO Brian Chesky described the purchase as a reaffirmation of Airbnb’s long history with the city.
“New York City has been part of our story since the earliest days of Airbnb,” CEO Brian Chesky said in a statement to AM New York. “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.”
Airbnb’s decision is notable because it follows years of conflict with New York over short-term rental regulations.
The company has opposed restrictions including Local Law 18, adopted in 2022, which significantly limited short-term rental listings by strengthening registration requirements and enforcing existing rules governing stays of fewer than 30 days.
Despite those disputes, Airbnb is now establishing a permanent office presence in Manhattan through its building purchase, suggesting the company continues to view New York as strategically important for its workforce even as its core short-term rental business faces tighter regulations.
The expansions challenge predictions of a business exodus
The announcements contrast with warnings from several prominent investors that New York’s political direction could discourage business investment.
Last year, billionaire hedge fund manager Bill Ackman warned that if Zohran Mamdani became mayor, “You’re going to see the flight of businesses from New York.”
Citadel founder Ken Griffin has also urged business leaders to “fight for their city,” arguing that political decisions could encourage companies and talented workers to relocate elsewhere. Griffin’s public disagreements with Mamdani escalated after the mayor promoted a pied-à-terre tax that highlighted Griffin’s Manhattan penthouse as an example of wealth concentration.
Following those comments, Citadel’s chief communications officer suggested the company could reconsider construction of its planned $6 billion Midtown tower, although that has not occurred.
New York officials welcome the investments
City and state leaders praised Anthropic’s expansion and framed it as evidence that New York remains attractive to innovative industries.
“I’d rather have these tools being built here, so that we benefit from that economic vitality and so that it’s New Yorkers who are shaping these tools; people who ride the subway every day, diverse New Yorkers,” City Comptroller Mark Levine told NY1.
Governor Kathy Hochul also highlighted the state’s growing technology sector, pointing to Micron’s planned $100 billion semiconductor investment in New York while saying the state “is the place if your business wants to grow and thrive.”
Other major Manhattan projects signal continued confidence
The two corporate investments coincide with several other high-profile commercial developments across Manhattan.
Construction has officially begun on Two World Trade Center after American Express committed to anchor the tower, marking a milestone in the decades-long redevelopment of the World Trade Center site.
At the groundbreaking ceremony, Mayor Zohran Mamdani praised the project. “I am proud to welcome American Express’s new global headquarters to Lower Manhattan. This is not just a sign of confidence in the future of our city — it is an investment in thousands of good jobs, the local economy, sustainability and the final piece of the rebuilt World Trade Center.”
Meanwhile, demolition has started at 350 Park Avenue, the future site of a 1,414-foot skyscraper being developed by Vornado, Rudin and Ken Griffin. The work suggests Griffin continues to move forward with plans for nearly 1 million square feet of office space for two Citadel companies despite his public disagreements with city leadership.
Office market remains active despite political debate
The latest developments suggest that many companies continue to view Manhattan as a valuable long-term location, even as debates over taxes, housing affordability, public safety and regulation continue.
Commercial real estate activity remains robust, with major office projects advancing and companies committing significant capital to new headquarters and expansions. Although vacancy estimates vary among real estate firms due to differing methodologies, recent investments by Anthropic, Airbnb, American Express and developers behind several landmark office projects indicate that many businesses continue to see strategic value in maintaining and expanding their presence in New York City.
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14 essential strategies to maximize your Social Security and avoid costly mistakes
Social Security is a vital lifeline for many seniors, providing crucial income support during retirement. With inflation at its highest in four decades, Social Security’s inflation-adjusted benefits offer protection against rising costs.
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Deciding when to claim Social Security is often about maximizing your benefit. Financial planners usually advise delaying your claim for as long as possible to secure the highest monthly payment. Your benefit is based on your lifetime earnings, with a full payout available at your full retirement age (FRA), which is currently between 66 and 67 depending on your birth year. Claiming before FRA results in a permanent reduction in your monthly benefit, while waiting beyond FRA leads to a permanent increase. However, the decision isn’t solely about maximizing the monthly check. Personal factors such as health, family circumstances, and financial needs can play a significant role in determining the right time to claim.
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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