First LIRR Strike Since 1994 Disrupts NYC CRE Industry

• The first Long Island Rail Road strike in more than 30 years is disrupting commutes for nearly 300,000 workers traveling into New York City.
• Commercial real estate professionals are scrambling with longer commutes, hotel stays, and remote work adjustments as negotiations continue.
• Industry leaders warn the strike could hurt retailers, restaurants, and small businesses ahead of Memorial Day weekend.

What the LIRR Strike Means for NYC Office Attendance

The first strike on the Long Island Rail Road since 1994 is creating fresh headaches for New York City’s commercial real estate industry at a time when office attendance is already under pressure. Workers from five unions walked off the job after failing to reach a labor agreement with the Metropolitan Transportation Authority before the May 16 deadline. The strike began Saturday and continued into Monday, affecting hundreds of thousands of commuters traveling daily from Long Island into Manhattan. For many CRE professionals, the disruption has forced difficult decisions about commuting, remote work, and client meetings.

What CRE Executives Are Saying About the Disruption

Dan Berman, managing partner of U.S. real estate at HSF Kramer, said he adjusted by taking an Uber into Manhattan and booking a hotel room in the city to avoid missing major meetings. Berman explained that the timing was especially challenging because the law firm was hosting global managing partners from around the world following the merger between Kramer Levin and Herbert Smith Freehills. His commute reportedly took more than an hour longer than usual. Meanwhile, Joseph Fingerman, president of commercial real estate at Peapack Private Bank & Trust, said many employees are working remotely while others attend the ICSC conference in Las Vegas. Fingerman noted that while firms can temporarily adapt through remote work, the broader economic impact on the New York region could become significant if the strike drags on.

What the Economic Risks Could Be for New York

The strike comes at a difficult moment for New York businesses heading into Memorial Day weekend, one of the busiest periods for retailers, restaurants, and hospitality operators. Fingerman warned that extended commuter disruptions could hurt foot traffic and local spending throughout the region. At the same time, he emphasized that any labor agreement must remain financially sustainable for the MTA to avoid future fare hikes or additional tax burdens. Kathy Hochul has already warned that some union demands could force LIRR fares to rise by as much as 8 percent. The labor negotiations also place additional attention on key transit and labor leaders, including Janno Lieber and John Samuelsen, as pressure builds to finalize a deal quickly.

What This Says About NYC’s Recovery Challenges

For the commercial real estate industry, the strike highlights how dependent New York’s office market still is on reliable mass transit. Even with hybrid work now common across the city, commuter rail systems remain essential to office attendance, leasing momentum, and daily business operations. Any prolonged disruption risks slowing return-to-office efforts that landlords and employers have spent years trying to rebuild after the pandemic. The strike also underscores how fragile the city’s recovery can feel when transportation systems face operational or labor challenges. If negotiations continue without resolution, many companies may lean more heavily on remote work flexibility, hotel stays, rideshare services, and staggered office schedules until rail service resumes.