Bill shielding commercial tenants from rent hikes a bad idea: OPINION

Post columnist compared Council proposal to rent stabilization for office and retail market

TRD New York /
September 03, 2014 11:55 AM

City Council members have proposed a bill that seeks to protect office and retail tenants from rent increases and from eviction as their leases end. The bill would harm commercial property values and the city’s tax base, the New York Post’s Lois Weiss wrote in a column today.

Under the proposed legislation, an agency would implement the new rental guidelines. Expected caps on lease payments would equate to “the cost of leasing similar premises within a one-mile radius … over the last five years,” according to the Post.

Weiss said the bill would heighten the probability that the commercial market would be subject to rent control and stabilization of the residential end. Lease terms would be 10 years, unless the tenant receives approval for a shorter term.

“This is the kind of bill that would send a terrible message to the business community about having arm’s-length transactions between two parties,” Steven Spinola of the Real Estate Board of New York told the New York Post. “City Council attorneys have suggested in the past, and we still believe, it is not within the scope of the powers of the City of New York, and if it moves ahead, it will be subject to legal challenges.” [NYP]Mark Maurer

Related Article

The massive meeting held in a suburban casino outside of Utica came at a time when the real estate industry is asking itself some tough questions. (Credit: iStock)

Meet the 400 landlords that are taking rent laws into their own hands

Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

State Senator Julia Salazar (Credit: Getty Images and iStock)

Sen. Julia Salazar proposes legislation to crack down on buyouts

From left: New York Communities for Change director Jonathan Westin, Neighborhood First Fund program director Joan Byron, and Ford Foundation president Darren Walker (Credit: NYC Communities, LinkedIn, and Ford Foundation)

The money behind the New York tenant movement