NEW YORK — As Mayor-elect Zohran Mamdani prepares to take office, New York's business leaders are cautiously adapting to the potential shake-up of their long-standing economic dominance. With Mamdani's socialist agenda set to challenge the city's financial norms, the relationship between Wall Street and City Hall may be on the brink of a transformative era.

The business community, historically influential in shaping municipal policy, finds itself at a crossroads. Despite their initial resistance, marked by significant financial contributions to oppose Mamdani's candidacy, many are now moving towards a pragmatic engagement. Kathy Wylde, president of the Partnership for New York City, likened the adjustment process to the seven stages of grief, noting that the community is "moving toward acceptance."

John Catsimatidis, a billionaire business mogul and a prominent figure in New York’s economic landscape, expressed a more critical view. He has plans to diversify his investments away from New York as a precaution, embodying the cautious stance of many of his peers. However, not all share Catsimatidis' apprehension. Some, like MaryAnne Gilmartin, president of MAG Partners, believe that there won’t be a mass exodus of businesses if the city remains safe and prosperous under Mamdani’s leadership.

Mamdani’s victory, fueled by grassroots support and smaller donations, suggests a significant public backing for his policies aimed at tackling the city’s high cost of living. His proposals include raising taxes on the ultra-wealthy and corporations to fund public services like free childcare and buses, echoing the broader democratic socialist platform endorsed by political figures such as Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders.

In an effort to bridge the gap between his administration and the business sector, Mamdani has shown willingness to engage in dialogue with major capitalists. He even named JPMorgan Chase CEO Jamie Dimon during a recent address, signaling an openness to collaborate with financial leaders.

Governor Kathy Hochul, who endorsed Mamdani, is seen as a potential buffer against drastic fiscal reforms, reassuring the business community that New York will maintain its competitiveness. Moreover, the mayor-elect’s campaign commitments, such as a multi-year rent freeze, have been met with a nuanced approach to reducing landlord costs, indicating a potential for compromise.

Despite their initial resistance, some of New York’s most influential business figures are beginning to acknowledge Mamdani’s mandate. Scott Rechler of RXR and Steven Roth of Vornado Realty Trust, who both financially supported efforts against Mamdani, have expressed readiness to work with him moving forward. Even Bill Ackman, a staunch critic during the campaign, extended an olive branch on election night.

As Mamdani prepares to navigate these complex relationships, the city watches closely. With a blend of cautious optimism and strategic planning, both the business elite and the new mayor might just find a way to coexist, shaping a new chapter for New York’s economic and social landscape.