J.W. Mays, Inc. (MAYS): 5 FORCES Analysis [Nov-2025 Updated]

You're digging into the competitive moat around J.W. Mays, Inc., a company sitting on $22.47 million in FY 2025 revenue, and honestly, the picture is complex. We're looking at a small player, with a market cap around $76.6 million, fighting giants in the New York commercial real estate space where tenant leverage is high-we saw a $25,000 per month rent concession at one building this year. While the high capital cost to enter the market keeps new developers out, the threat from remote work and modern office substitutes is defintely pressing. Let's break down exactly where the pressure points are across all five of Michael Porter's forces so you can see the near-term risks clearly.

J.W. Mays, Inc. (MAYS) - Porter's Five Forces: Bargaining power of suppliers

When you look at who supplies the necessary inputs for J.W. Mays, Inc. to operate its real estate portfolio, the power dynamic shifts quite a bit depending on the specific input. For a company like J.W. Mays, Inc., which is primarily an owner-operator of commercial properties in New York, the key suppliers are labor, property management services, maintenance contractors, and capital providers.

For property management services, the bargaining power of suppliers is definitely low. Here's the quick math: J.W. Mays, Inc. runs a lean operation. As of late 2025, the company has only 28 employees in total. With such a small internal staff, the need to outsource high-level, specialized property management functions is reduced, giving J.W. Mays, Inc. more leverage when negotiating with any external management firms they might use for specific tasks or properties.

Labor supply is a bit more complex. We see moderate power here, especially because a union contract covering approximately 21% of employees was set to expire in November 2025. When a contract is expiring, the union representing those employees gains leverage for the negotiation period, which can push up wage and benefit costs for that segment of the workforce. Still, given the small overall employee base of 28, the impact is concentrated rather than systemic across the entire firm.

Capital and financing present a moderate to high supplier power dynamic right now. As a real estate entity, J.W. Mays, Inc. relies on debt, and the market in late 2025 is tight. The company reported Total Debt of $27,270 thousand USD in its trailing twelve months data as of July 31, 2025. Lenders, the suppliers of this capital, hold significant sway. For context, middle-market debt funding costs for well-positioned companies in 2025 were generally in the 11% to 14% range, with senior debt potentially costing 6% to 12%. If J.W. Mays, Inc. needs to refinance or secure new debt, these high interest rate environments mean lenders can demand stricter terms, increasing their bargaining power.

Conversely, the power of suppliers for general maintenance and construction looks low. This is often because J.W. Mays, Inc. controls its capital spending, which dictates the volume of work available to contractors. The company has planned capital expenditures of $1.5 million over the next twelve months ending January 31, 2026. This planned, controlled spending on tenant improvements and property enhancements suggests J.W. Mays, Inc. is not in a desperate rush to secure services, allowing it to negotiate pricing with maintenance and construction vendors from a position of relative strength. You can see the planned spend below:

The overall supplier landscape for J.W. Mays, Inc. is bifurcated. On one side, you have the highly sensitive capital markets where lenders hold the upper hand due to prevailing interest rates. On the other, the company's small internal structure and controlled CapEx budget keep the power tilted toward J.W. Mays, Inc. when dealing with day-to-day operational suppliers.

J.W. Mays, Inc. (MAYS) - Porter's Five Forces: Bargaining power of customers

You're analyzing J.W. Mays, Inc. (MAYS) and the customer power is definitely a key lever to watch in their specialized commercial real estate niche. For a company with an annual revenue base of $22.47 million for the fiscal year ending July 31, 2025, the power held by its tenants can swing operational results significantly. This revenue base, which saw quarterly revenues like $5.64 million for the three months ended January 31, 2025, and $5.65 million for the quarter ending July 31, 2025, is supported by a relatively small roster of premium tenants, which inherently concentrates negotiating strength.

The bargaining power is Moderate to High because J.W. Mays, Inc. focuses on leasing commercial real estate space to premium tenants, meaning the loss of any single major tenant has an outsized impact on the total revenue. This concentration is clear when you look at specific properties where a few major tenants command a significant portion of the rentable square footage. Honestly, when a tenant occupies over 10% of a building, they hold high leverage, especially at lease renewal time.

We see this power play out in real-time. Tenants definitely gained leverage in 2025. A prime example is the agreement at the 9 Bond Street building in Brooklyn, New York, where a tenant secured a six-month rent concession of $25,000 per month spanning from February through July 2025. That's a direct, quantifiable concession that impacts near-term cash flow, showing tenants are willing and able to push for favorable terms.

Also, consider the switching costs. In the competitive New York metro market, where J.W. Mays, Inc. holds significant assets, the costs for a tenant to move when their lease expires are relatively low compared to the potential savings or better terms they might find elsewhere. This low barrier to exit keeps the pressure on J.W. Mays, Inc. to keep current tenants happy with pricing and terms.

Here's a quick look at the tenant concentration data we can pull from property disclosures, which illustrates the high-leverage situation for some of their largest occupants:

The fact that J.W. Mays, Inc. is actively investing capital-anticipating approximately $1.2 million in capital expenditures over the next twelve months for tenant improvements-is a direct action to mitigate this buyer power by enhancing the attractiveness of the assets. Still, the market dynamics mean you have to manage these key relationships carefully.

You should track the following near-term risks related to customer power:

• Lease expirations coming up in the next 18 months.
• The success rate of negotiating renewals at current or higher rates.
• Any further requests for rent abatements or concessions in 2026.
• The impact of the $142,000 annual rent loss from a non-renewing tenant at 9 Bond Street effective June 30, 2025.

Finance: draft 13-week cash view by Friday.

J.W. Mays, Inc. (MAYS) - Porter's Five Forces: Competitive rivalry

You're looking at J.W. Mays, Inc. in the context of the New York metropolitan commercial real estate market, and honestly, the competitive rivalry here is fierce. We are talking about an intense rivalry in the New York metropolitan commercial real estate market with numerous large REITs and private equity firms. These giants are not just local; they are global players with massive war chests ready to deploy. For instance, global private equity dry powder for commercial real estate exceeds $350B, with firms like Blackstone alone having $177B ready to deploy as of mid-2025.

This environment makes MAYS a small player with a market capitalization of $78.97 million as of November 20, 2025, competing against these behemoths. To put that scale in perspective, J.W. Mays, Inc. reported total revenue of $22.47 million for the full year ended July 31, 2025, and employed just 28 people as of November 23, 2025. That's a tiny fraction of the capital being wielded by the competition.

The nature of the product means differentiation is low, as the core product is commercial space, making tenant retention a key competitive battle. When the product is fundamentally similar-office, retail, or industrial space-the fight shifts to price, location, and lease terms. This is where the larger players can use their scale to offer more attractive concessions or absorb short-term losses to secure long-term occupancy. J.W. Mays, Inc. reported a net loss of $0.13624 million for the same full year.

Furthermore, slow growth in the mature commercial real estate sector intensifies the fight for existing tenants. While some segments show promise, the overall environment demands careful management. For example, while Manhattan office leasing activity saw a 25% leap in 2024, driven by trophy assets, the overall citywide office vacancy rate in Q3 2024 was still around 13.3%. This means there is still significant available space that competitors are fighting over, and tenants are prioritizing high-quality, modern spaces, which may not align with J.W. Mays, Inc.'s existing portfolio vintage.

Here's a quick look at how J.W. Mays, Inc.'s latest reported financials stack up against the competitive pressures we see in the market:

The competitive landscape dictates several key battlegrounds for J.W. Mays, Inc. You need to watch these areas closely:

• Tenant flight to quality in office assets.
• Competition for stable retail tenants in prime locations.
• Pressure on older building valuations from conversions.
• The high cost of capital for refinancing existing debt.

The slow recovery in certain segments means that even small gains in occupancy are hard-won. For instance, while Brooklyn saw a 4% uptick in transaction volume in 1H25, the dollar volume actually dropped by 2% compared to 1H24, excluding one massive outlier sale. This suggests that while deals are happening, the value per transaction might be inconsistent or smaller, reflecting the cautious capital deployment you see from major investors.

Finance: draft a sensitivity analysis on the impact of a 50 basis point interest rate increase on J.W. Mays, Inc.'s debt servicing costs by next Tuesday.

J.W. Mays, Inc. (MAYS) - Porter's Five Forces: Threat of substitutes

You're looking at J.W. Mays, Inc. (MAYS) and wondering how the structural shift in commercial real estate-especially office space-is hitting their core business. The threat of substitutes here is defintely high because the very need for their primary asset class, traditional office and retail space, is being challenged by new work models and competing property types.

The high threat from remote work models is undeniable. Nationally, average office occupancy across major U.S. cities was still under 55% as of Q1 2025, according to some reports. This persistent underutilization, with 66% of US companies offering some form of flexibility, means less demand for the space J.W. Mays, Inc. leases. For J.W. Mays, Inc. specifically, this substitute behavior is already costing them; a tenant occupying 3,080 square feet at their 9 Bond Street building in Brooklyn gave notice in May 2025 that they would not renew, resulting in a loss of rental income of approximately $142,000 per annum. This is playing out against a backdrop where J.W. Mays, Inc. reported a full-year net loss of $0.14 Million for fiscal year 2025, on trailing twelve-month revenue of $22.5M as of July 31, 2025.

Next, modern, Class A developments present a significant substitute threat to J.W. Mays, Inc.'s older, established properties. While Manhattan saw a revival with 23.2 million square feet leased in the first nine months of 2025, this premium demand often bypasses older stock. In Brooklyn, a core market for J.W. Mays, Inc., the office availability rate stood at 20.4% in Q3 2025, indicating ample substitute inventory for tenants to choose from, even if new construction is muted nationally at 40.2M SF under construction. Tenants can easily substitute J.W. Mays, Inc.'s space with available inventory from other landlords in Brooklyn or Jamaica.

We also see a moderate threat from alternative real estate investments. Capital is flowing into sectors perceived as more resilient or modern. For instance, Medical Outpatient Building (MOB) transaction volume totaled $3.5 billion in the first half of 2025, signaling investor interest in specialized, essential services real estate. Industrial remains strong, with vacancy rates well below pre-pandemic averages, even if Q3 2024 data showed a 6.8% rate. These alternative asset classes offer different risk/return profiles that can pull capital away from traditional office and retail holdings like those J.W. Mays, Inc. manages.

Here's a quick look at how J.W. Mays, Inc.'s recent performance sits against the broader market pressures they face from these substitutes:

The company is actively investing in its existing properties to combat obsolescence, noting $1,363,427 in tenant improvements at the Jamaica, New York premises, though only $235,000 was reimbursed by the tenant. They anticipate another $1.2 million in capital expenditures over the next twelve months ending April 30, 2026. Still, the overall market suggests that for many tenants, the substitute option-whether it's a modern Class A building, a suburban satellite office, or a completely different asset class-offers a more compelling value proposition than J.W. Mays, Inc.'s current inventory.

J.W. Mays, Inc. (MAYS) - Porter's Five Forces: Threat of new entrants

You're looking at the barriers to entry for J.W. Mays, Inc. (MAYS) in its core New York metro market, and honestly, the hurdles are substantial. The sheer expense of getting a foothold in prime commercial real estate here acts as a massive deterrent for any new player.

The extremely high capital cost of acquiring or developing prime commercial properties in the New York metro area is the first wall. New entrants face construction costs that are among the highest in the nation. For instance, high-rise office construction in the East region, where J.W. Mays, Inc. concentrates its assets, ranges from $688 to $827 per square foot as of early 2025. Overall commercial construction in New York City is cited between $350 to $870 per square foot. This upfront capital requirement immediately filters out smaller or less capitalized competitors.

We can see this high-cost environment reflected in the rental rates J.W. Mays, Inc. can command from its established, high-quality assets. Consider the market rates for 2025:

Plus, navigating the regulatory and zoning landscape in NYC creates a significant barrier to entry for new developers. It's a complex, time-consuming process that favors incumbents who understand the system.

The regulatory environment presents several specific challenges that slow down or stop new entrants:

• The Floor Area Ratio (FAR) cap, established under the 1961 Zoning Resolution, still limits building size relative to lot size.
• Mandatory Inclusionary Housing (MIH) requires a percentage of permanently affordable units in rezoned areas.
• The Fairness in Apartment Rental Expenses (FARE) Act took effect on June 11, 2025, shifting broker fees to landlords, which could be offset by higher rental rates.
• Recent 'City of Yes' reforms aim to simplify some rules but still involve complex approval processes for new density or conversions.

J.W. Mays, Inc. benefits from owning long-established, strategically located properties, which is a competitive moat. For example, the Fulton Street at Bond Street building, spanning 380,000 square feet, is 90% owned by the Company and is subject to a long-term garage lease extending to 2073. This existing, stabilized asset base means J.W. Mays, Inc. doesn't have to absorb the initial, massive capital outlay or regulatory risk for that square footage.

Finally, the limited available land for development means new entrants must rely on redevelopment or expensive acquisitions of existing structures. With Manhattan's Class A vacancy rates potentially dropping below 10% in 2025, and Class B/C facing vacancy rates above 20%, acquiring a ready-to-lease, well-located asset like those held by J.W. Mays, Inc. is prohibitively expensive, if even possible.

Finance: draft 13-week cash view by Friday