It’s no secret that New York is one of the most expensive cities in the world. Manhattan tops the list of priciest places to live in the United States, and Brooklyn and Queens are trailing not too far behind — the financial squeeze is affecting all New Yorkers.
And it’s not just residents — it’s businesses, too. Businesses are vital to the well being of our economy — New York City is home to more than 183,000 small businesses and more than 200,000 businesses overall. As owners of two of those businesses, we feel these pressures firsthand.
From commercial rents to utilities, every expense is rising and making it more difficult to hire, expand, and invest in the city we call home. The cost of operating in New York is becoming increasingly unsustainable and it’s forcing too many companies to make an impossible choice: stay and struggle, or leave and survive.
Gov. Hochul’s proposed extension of the Relocation and Employment Assistance Program (REAP) in her Executive Budget is an investment in New York City’s future. By empowering businesses like ours to succeed, this initiative not only allows us business owners to stay within the five boroughs but also drives a more resilient, inclusive, and sustainable regional economy — one where growth benefits every community.
Incentives like the REAP are essential to keeping businesses in New York, and bringing more to our city. REAP provides a $3,000 annual tax credit per employee for up to 12 years — a lifeline for businesses willing to relocate to Upper Manhattan or the outer boroughs. It allows us to reinvest in our teams, expand our operations, and strengthen neighborhoods and communities across New York.
The impact speaks for itself. According to data from the Long Island City Partnership and the Downtown Brooklyn Partnership, at least 12 companies in Long Island City have leveraged REAP, helping create more than 2,600 jobs. In Brooklyn, at least 50 companies have benefited, supporting the creation of more than 3,500 jobs. This program works.
Take Ferrara Manufacturing. Ferrara has been a part of New York City’s manufacturing landscape since 1987, originally based in the historic Garment District. But, as the business grew, so did the need for a larger space — one that would support growth while keeping operations within New York City.
Thanks to REAP, Ferrara was able to make the strategic decision to move to Long Island City in 2023, securing the space needed to grow while remaining connected to the city’s vibrant manufacturing ecosystem. Since relocating, Ferrara has also been able to substantially invest in new equipment to support growth, including expanded capabilities to produce military uniforms. Without REAP, that move may not have been possible here in New York.
Architecture Research Office (ARO) faced a similar decision when looking for a new office space. The award-winning firm has been designing transformative projects since 1993, originally based in Hudson Square. Thanks to REAP, ARO was able to relocate to Downtown Brooklyn — a strategic move that has allowed the firm to expand its impact in New York and beyond.
Since the move to Willoughby Square, ARO has been able to impact its Brooklyn neighborhood. Recently, ARO designed a new complex for the Khalil Gibran International Academy (KGIA), New York City’s first Arabic-English dual-language public school. The project reflects the firm’s commitment to the neighborhoods it calls home. By remaining in New York and growing in Brooklyn, ARO isn’t just running a business — it’s boosting the local economy and building a more dynamic city. REAP made that possible.
Right now, too many businesses are closing their doors or moving out of state because they simply can’t afford to stay. We need policies like REAP to ensure businesses have the support we need to grow, create jobs, and help our communities thrive.
Building on this success, the governor continues to advocate for commercial programs that deliver real results. She champions businesses across New York City — which is why she announced the new Relocation Assistance Credit for Employees (RACE) program. With strong momentum behind these incentives, the Five Borough Jobs Campaign is uniting the business community to amplify their impact.
New York’s business owners aren’t looking for a handout — we’re looking for a shot to succeed so we can uplift the city we care about. Follow Gov. Hochul’s and Mayor Adams’ lead and ensure this gets passed in the final budget, because the future of New York’s economy depends on it.
Ferrara is COO and managing partner of Ferrara Manufacturing. Cassell is a founding principal of Architecture Research Office.
