CRE Leaders Optimistic that Congestion Pricing will Pay Off in Long Term

The Central Business District Tolling Plan (CBDTP), more commonly called the congestion pricing plan, is expected to launch this month as it continues to spark debate in and around New York City. The plan that follows in the footsteps of London, Stockholm, and Singapore will impose a congestion fare on drivers passing through Manhattan’s central business district from the tip of Lower Manhattan through Midtown to 60th Street. Those is opposition to the plan claim it will harm small businesses, result in higher prices for consumers, and place an undue burden on commuters from New Jersey. However, leaders in commercial real estate believe that the plan “will pay off in the long term for the city’s environmental goals, quality of life, and for property types from aging office buildings to retail corridors;” and that the “short-term pain for businesses operating in the affected area is outweighed by the overall positive impacts of the fees.” It has been further pointed out that “our mass transit system is the cardiovascular system of the city and region, and in addition to generating a new and sustainable revenue stream for the city’s mass transit infrastructure, congestion pricing will reduce traffic and air pollution.”