Legislation Proposal for Commercial Rent Control Resurfaces

In 2018, the Small Business Jobs Survival Act (SBJSA) was proposed by city council with the intention of giving “small businesses rights in the commercial lease renewal process,” and frequently paralleled to a form of rent control. Less than 2 years later, Intro 1796-2019 Commercial Rent Stabilization was proposed, which was “fashioned after the way the state handles rent-regulated apartments,” neither bill was passed. Both bills sparked opposition from the real estate industry, the latter of the two prompting a Real Estate Board of New York spokesperson to reportedly reiterate findings from two studies completed at the time by the New York City Department of City Planning and the City Comptroller determining that “the issue of retail vacancies is not a citywide problem.” It was further pointed out that the proposal “fails to address the increasing burdens facing small businesses” that go beyond rising rents, such as the regulatory burdens of city agency inspections and permitting, community board and Landmarks Preservation Commission approvals, and other bureaucratic barriers to starting a business. In addition, increased minimum wages, paid sick leave, and property tax assessment increases continue to present further financial challenges. Other arguments in opposition of the proposed Intro-1796 cited a reported 2018 determination by the New York City Bar Association that “the New York City Council has no legal power to enact commercial rent control; while the Real Property Law Committee reportedly determined that the city could only impose commercial rent control by a concern for ‘health and welfare’ and argued that courts would disallow it.”

Recently the proposed Senate Bill S8319 that was reportedly initially introduced by former Assembly Member Danny O’Donnell in 2020 has been resurrected by State Sen. Julia Salazar and Assembly Member Emily Gallagher and dubbed the New York City Small Business Rent Stabilization Act. According to the article by City and State NY:

• A nine-member Rent Guidelines Board would be created, similar to the existing one for residential tenants, with each member appointed by the mayor.
• The board would have oversight to set rent increases for all commercial properties in the city with leases signed after the law took effect.
• Unless the landlord can show cause why the lease should not be renewed, the bill would establish the right of the tenant to renew the lease for a minimum of 10 years unless at the option of the tenant, and with the written approval by the landlord, a lease of shorter or longer duration is selected.

The bill being championed by two members of the Democratic Socialists of America has once again sparked opposition from the real estate industry. An article by The Real Deal pointed out that although customers may like their stores to stay forever, “few realize the ramification of giving stores unilateral power to do so,” suggesting that commercial rent control “lets outdated businesses linger, freezing out whatever might move in.” In contrast, “in a free market, successful stores tend to stick around and mediocre ones get replaced by trendy new shops and restaurants,” keeping the stores relevant to the continually changing trends in today’s consumer market.

Source:    https://www.cityandstateny.com/policy/2026/02/socialists-take-aim-commercial-rent/411572/

Source:    https://www.nysenate.gov/legislation/bills/2025/S8319

Source:    https://therealdeal.com/new-york/2026/02/24/commercial-rent-stabilization-rears-ugly-head-in-albany/