Real Estate

Real Estate Titans Urge Biden to Step Aside Amid 2024 Election Concerns

Real estate leaders urge Biden to step aside, with his nomination probability dropping below 50% amid market concerns.

By Tal Alexander

7/11, 07:33 EDT
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Key Takeaway

  • Prominent real estate developers, including Rick Caruso and Jonathan Rose, are urging President Biden to step aside for the next generation of Democratic leaders.
  • Developer Jeff Gural also supports Biden stepping down, citing concerns over age and the risk of a Trump re-election.
  • Lieutenant Gov. Antonio Delgado has publicly called for Biden to step aside, despite Governor Hochul's stance on party unity against Trump.

Real Estate Voices on Biden's Future

Nearly two weeks after a pivotal debate, the real estate sector is weighing in on whether President Biden should continue his campaign for re-election. Prominent figures like Los Angeles-based developer Rick Caruso have publicly suggested that Biden should step aside, citing the need for new leadership. Caruso, who previously hosted a multi-million dollar fundraiser for Biden, has paused his support, reflecting a growing sentiment among Democratic donors and officials. This debate has sparked a broader discussion within the industry, with developers like Jonathan Rose and Jeff Gural expressing their concerns and hopes for the future of the Democratic Party.

The Growing Call for New Leadership

The call for President Biden to step aside is not isolated. Developer Jonathan Rose, while acknowledging Biden's accomplishments, has long believed in the necessity of ushering in a new generation of Democratic leaders. Rose's reluctance to donate to Biden's campaign underscores a broader desire for fresh faces in the political arena. Similarly, Jeff Gural, who has a personal connection to Biden through his appointment to the Public Buildings Reform Board, expressed his admiration for the president but emphasized the risks of a potential Trump re-election. Gural's comments highlight the age factor and the need for a strategic exit to preserve the party's chances in the upcoming election.

Political Uncertainty and Market Implications

The uncertainty surrounding Biden's candidacy has significant implications for the financial markets. According to PredictIt data, Biden's probability of being the Democratic nominee has dropped below 50%, down from 60% earlier in the week. This decline reflects growing unease within the party and among its supporters. Bloomberg reports that a potential Biden exit could introduce political risk into the markets, initially favoring "Trump trades" such as a steeper yield curve and a stronger dollar. However, these trades could reverse if a new Democratic candidate emerges, potentially curbing Trump's prospects. RBC's Lori Calvasina notes that election years typically see increased market volatility, and renewed uncertainty could heighten this trend.

Real Estate Sector's Perspective

The real estate sector's engagement in this political debate is noteworthy. Developers like Rick Caruso and Jonathan Rose are influential figures whose opinions carry weight within the industry. Their calls for Biden to step aside reflect a broader concern about the party's future and the potential impact on the markets. The sector's focus on stability and growth aligns with the need for a clear and decisive leadership transition. As the debate continues, the real estate industry's perspective will be crucial in shaping the broader narrative and influencing political and market outcomes.

Street Views

  • Rick Caruso, Los Angeles-based developer (Neutral on President Biden):

    "Stepping aside is the right and honorable thing for President Biden to do."

  • Jonathan Rose, Developer (Neutral on President Biden):

    "We now need to bring forth the next generation of democratic leaders... I very much hope that President Biden decides to withdraw from his presidential candidacy, and calls for an open convention. The American people would then benefit from an incredibly robust period of exposure to an amazing next generation of democratic leaders."

  • Jeff Gural, Developer (Neutral on President Biden):

    "He needs to leave on a high note and the risk of electing Trump is just too scary... Obviously, Biden’s debate performance was very disappointing, and I think he has to reassess whether or not he feels he can serve for another four years. We are both the same age, and I know that I’m slowing down, and you can’t beat Father Time."