It looks like the claims about a mass business exodus from New York City may be a tad overblown, according to at least one report.

New data from commercial real estate firm JLL revealed a decline in vacant office spaces in the city, plus increasing rents and demand for office spaces during the first quarter of 2026, directly contradicting threats that Mayor Zohran Mamdani’s ascent would lead businesses to relocate to states with lower tax rates.

This improvement is largely due to artificial intelligence firms coming to the Big Apple. According to the JLL report, AI companies are renting at double the rate they did in 2025. But it’s also thanks to corporations recommitting to the city, like Bank of America signing a lease for two decades in Midtown.

It’s a promising sign for Mamdani, a democratic socialist who proposed various tax hikes during his campaign in 2025. While I’m wary of trying to glean too much from a single report, it’s evidence that perhaps the threats of people and businesses leaving the city are empty ones.

It’s also quite ironic, given that the jobs report released by the Bureau of Labor Statistics on April 3 shows low wage growth nationally. Republicans have spent years claiming to be the party of business, but it doesn’t appear that things are improving under their leadership at the national level.

Whether business leaders like it or not, NYC remains the Big Apple

Recently, asset manager Apollo Global Management announced that it was making plans for a second headquarters outside of New York City, reigniting the conversation over the mayor’s tax plans.

On the campaign trail, Mamdani had proposed raising the corporate income tax from 7.25% to 11.5%. In his budget proposal, he called on increasing the tax rate for the top percentile of earners in the city to 5.88%.

JPMorgan Chase CEO Jamie Dimon added to the hysteria on April 6, noting that the company’s Texas office now had more employees than its New York City office and reminding shareholders that the city could always go back to the way it was in the 1970s.

But whether business leaders like it or not, New York City is going to remain the largest city in the country for the foreseeable future – meaning that having a presence here is nonnegotiable for global corporations, even if taxes are raised. Business leaders may love to complain about Mamdani, but the idea that they’re deserting the city is laughable – and they know it.

It also doesn’t seem like tax increases are going to happen, at least if Kathy Hochul has anything to say about it. The New York governor didn’t include any tax increases in her own budget proposal, despite their popularity among the New York City Council and the state legislature.

Some bad signs for New York City, but nothing new

There are still signs New York City has some setbacks, just like the rest of the country.

The city comptroller recently said that aside from the health care and social assistance category, New York has lost nearly 40,000 jobs over the past year. The city is facing a $5.4 billion budget shortfall.

Yet things are dire everywhere – it’s not just because New York City has a leftist mayor.

I don’t see why it’s so bad to increase taxes on the wealthiest people in New York City if the tradeoff is a wider social safety net. I voted for Mamdani because I believe the government is responsible for a certain level of care. I believe in the power of universal childcare and free buses, and I think New York City can show the rest of the country what’s possible when politicians refuse to bend the knee to corporate interests.

If anything, corporate leaders should change their perspective and show that they're willing to play ball. Clearly, they don't plan on disappearing from New York.

Follow USA TODAY columnist Sara Pequeño on Bluesky: @sarapequeno.bsky.social

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