Kevin O’Leary, widely recognized as “Mr. Wonderful” from the TV show “Shark Tank” and chief of O’Leary Ventures, has issued a stark warning to real estate developers and investors regarding the business climate in New York. This caution comes in the wake of a New York state judge’s decision ordering former President Donald Trump to pay $355 million in punitive damages in a civil fraud case. O’Leary’s advice transcends the particulars of the Trump case, focusing instead on the broader implications for anyone considering real estate development or investment in New York State.
During an appearance on “Fox & Friends Weekend,” O’Leary urged potential investors to look beyond the “Trump factor” and consider the message this judgment sends about the risk of capital investment in New York. He characterized the ruling as arbitrary and expressed confusion over the judge’s determination of the punitive amount. O’Leary described the situation as an “atrocity” and an “embarrassment,” viewing it as a direct attack on the real estate sector.
Reiterating his stance on “Cavuto: Coast to Coast” on FOX Business, O’Leary voiced his broader concerns about investing in New York, labeling it alongside California as a “loser state” due to policies he views as hostile to business, such as high taxes and overly competitive regulations. He argued that the real estate sector, which typically generates significant cash flow, is now being threatened by what he perceives as New York’s misinterpretation of standard business negotiations as potential fraud.
O’Leary recommended that developers and investors avoid incorporating in New York and instead consider states he labels as “winner states,” like North Dakota, West Virginia, Texas, or Oklahoma. He emphasized the importance of voting with capital and opting for states with more favorable business climates.
The sentiment was echoed by FOX Business host Charles Payne, who concurred with O’Leary’s assessment, highlighting the significant exodus of business from New York to states like Florida and Texas. Payne pointed to the underutilization of Manhattan skyscrapers, currently at about 50% capacity, as a sign that businesses may not return to full use in the near future. He also cited New York’s crime rates and increasing regulations as additional factors deterring businesses from operating in the state.
This discussion sheds light on growing concerns within the business and investment communities about the viability of New York as a favorable environment for real estate and other business ventures.