In addition, construction contractors and building service contractors with contract term lengths longer than 90 days will have to pay their employees the minimum living wage.

GlobeSt.com: Why is the expansion of the Living Wage Law to tenants, concessionaires, and contractors significant?

Epstein: The order requires any entity that occupies space in—or provide services to—a subsidized building now must pay the living

wage, even if they have not received direct financial assistance from the city. As such, the order will have a direct impact on the construction costs, labor costs and profit margins of tenant retailers, who may seek the additional costs recouped in lower rents or higher concessions.

In addition, developers in parts of the city where rents already are discounted to attract retailers will be particularly challenged to balance the benefits of the subsidies with the additional costs associated with them.

GlobeSt.com: Should developers who are thinking about purchasing one of these properties be concerned with the Executive Order?

Epstein: Yes. The order also has expanded the definition of who is considered a financial benefits recipient to include any assignee or successor in interest of real property improved or developed with financial assistance. This inclusion of successors and assignees could have significant impact on the city's real estate market since purchasers, assignees and other successors of benefited property will want, among other things, full disclosure of the subsidized benefits and assurances of compliance with the living wage law.

GlobeSt.com: What else should interested parties know about the Mayor's executive order?

Epstein: The Mayor has made the order prospective and it will only apply to discretionary awards and/or assistance granted on or after September 30, 2104, its effective date. The order considers the negative impact a retrospective application would have and limits its application so as not to interfere with previously awarded assistance. Notably, any amendment to the underlying agreements or material terms of the award made after September 30, 2014 could subject the recipient (and by extension its tenants, contractors and concessionaires) to compliance with the living wage law.

Owners of subsidized commercial properties who are contemplating or negotiating an amendment should review their existing agreements and awards for a cost-benefit analysis of doing the amendment.