NEW YORK, NY — A New York City Council committee is considering a bill that would give some retail tenants a stronger foothold when their leases come up for renewal, including the right to remain in place for up to a year while negotiations continue.
The proposal, Intro 90, drew sharp pushback at a hearing Wednesday from brokers and real estate groups who said it could unsettle the city’s retail market. Supporters argue the measure would give small businesses more predictability, more disclosure from landlords and a better chance to survive steep rent hikes.
The Committee on Small Business can amend the measure or advance it to the full council. For now, the legislation sits at the center of a broader debate over how to balance tenant protections with commercial property interests in a market where available storefronts have grown harder to find.
What Intro 90 would change for storefront tenants
Backers call the measure the Storefront Business Bill of Rights. Among other things, it would require written leases and provide model lease forms in several languages, a step proponents say could help tenants better understand their obligations before signing.
The bill would also require landlords to notify tenants 120 days before a lease ends if they intend to offer a renewal or do not plan to renew. In addition, landlords would have to share information on two years of past costs, such as utilities and insurance, along with two years of projected future costs.
Those disclosure requirements are meant to create more transparency in a business relationship that often leaves smaller merchants at a disadvantage. Business advocates say clearer terms and better information could help reduce disputes before they start.
The one-year extension is the most disputed part of the proposal
The bill’s most controversial provision would give certain tenants a one-time chance to extend their leases for up to a year if they have a lease of more than one year and still have not reached a renewal deal 30 days before expiration.
If a landlord has already lined up a new tenant and told the current occupant, the extension period would be shortened to 90 days. During any extension, rent increases would be limited to between 7% and 10%, depending on when the landlord gave notice.
Industry groups told the committee that the extension and rent cap could make the leasing process more uncertain for both sides. If landlords fail to follow the rules, tenants could sue for up to 3% of a property’s assessed value, plus damages and attorney fees.
Brokers and property groups warn of market strain
Commercial brokers and lobbyists said the mandatory extension could complicate deals and make it harder for property owners to plan ahead. Joanne Podell, executive vice chair at Cushman & Wakefield, said she supports efforts to protect small businesses and improve transparency, but believes parts of the bill would have the opposite effect.
Steven Soutendijk, also with Cushman & Wakefield, said replacing an existing tenant already takes time, money and risk because owners must market the space, pay brokers and negotiate new terms. He said landlords often prefer to keep a reliable tenant rather than start over with an unknown one.
The Real Estate Board of New York said in written testimony that helping tenants understand past costs could be useful, but forecasting future expenses would be difficult for landlords to do accurately.
Supporters say small retailers need more breathing room
Manhattan Council Member Gale Brewer, who introduced the latest version of the bill in January, said the extension rule is needed because tenants can face major rent jumps when landlords have leverage in a tight market.
Brewer said the pressure from chain stores is intense and that the measure is meant to help independent businesses avoid being pushed out at renewal time. The proposal has nine co-sponsors and comes as the city administration has emphasized stability for small businesses.
Supporters say the bill is designed to slow the churn that can displace neighborhood merchants and make it harder for long-running businesses to stay put when neighborhoods change around them.
Retail vacancies remain tight across key Manhattan corridors
The hearing came as retail landlords and tenants continue to navigate a relatively tight market. JLL said New York’s prime retail corridors ended the second quarter with an average availability rate of 11.6%, the lowest since 2017, with only 164 storefronts available.
REBNY said asking rents in many corridors are still about 30% below pre-pandemic highs, but they have been climbing in much of Manhattan and demand has spread beyond the best-known shopping streets. That backdrop has made lease renewals especially important for tenants trying to stay in place.
Francesca Bruce, executive director of the Grand Street Business Improvement District in East Williamsburg, said most businesses in her area rent their spaces. She said tenants are being squeezed between falling business and rising rent, even as the neighborhood’s vacancy rate remains above the city average.
Business groups say some protections make sense, but not the mandate
The Manhattan Chamber of Commerce said it generally supports the legislation, but President and CEO Jessica Walker said she also has concerns about the mandatory renewal provision. She said some parts of the bill could help businesses at the point of lease renewal, where they are often vulnerable.
At the same time, Walker said a forced extension could create new problems for landlords trying to refinance properties. She said roughly 35% to 40% of landlords have mortgages with covenants requiring a minimum rent, which means a rent cap could create financing issues.
That split reflects the broader tension at the heart of the hearing: small businesses want more stability, while property owners and brokers argue that rigid lease rules could make the market harder to navigate for everyone involved.
