Bar association says city lacks authority to establish commercial rent control (Crain’s)
Crain’s, September 11, 2018
Bar association says city lacks authority to establish commercial rent control
“The city lacks the legal authority to establish commercial rent control, according to a report released Tuesday by the New York City Bar Association, so a pending bill to give retail tenants power over lease renewals would likely be overturned in court if it became law. City Councilman Ydanis Rodriguez in March introduced the Small Business Jobs Survival Act, which has been proposed several times in the past and is often summarized as commercial rent control. The bill would give tenants a right to a 10-year lease renewal if they have abided by all of the terms of their expiring deal. If a new rent cannot be agreed upon, or the landlord refuses to renew, tenants could get an extension through binding arbitration. Commercial rent control was in place in the five boroughs from 1945 to 1963 under a state law that eventually expired. Rising rents, gentrification and a huge number of vacant storefronts have spurred this latest attempt to give an edge to existing tenants in lease negotiations.”
