District News

Commercial Rent Control Hearing

Sep 14, 2021
vacant storefront

The New York City Council Committee on Small Business will be holding a remote hearing this Friday, September 17 at 10:00am on a bill to implement commercial rent control for certain businesses. Int. 1796 will establish a system of commercial rent registration and regulation on retail stores of 10,000 square feet or less, manufacturing establishments of 25,000 square feet or less, and professional services and other offices of 10,000 square feet or less.

The program as proposed will be overseen by a seven-member Commercial Rent Guidelines Board appointed by the mayor representing professionals in finance and economics, commercials tenants, and commercial property owners. The Board will be responsible for establishing annual guidelines and the rate of adjustment for covered commercial spaces.

The New York City BID Association will be submitting testimony opposing this legislation; the Lincoln Square BID may submit testimony as well. The commercial real estate market faced significant struggles even prior to the COVID-19 pandemic. The additional burden of commercial rent control would create additional hardships for property owners attempting to lease vacant spaces that could lead to more vacant commercial spaces, threatening the City’s economic recovery.

The hearing will be streamed on the City Council’s website. Those wishing to testify should register here. Written testimony may be submitted up to 72 hours after the end of the hearing.

Photo credit: Ben Fractenberg/THE CITY