NYC Businesses Could Get An Extra Year After Leases Expires

NEW YORK CITY—Storefront tenants could receive an extra year to remain in their spaces after their leases expire, even if their landlords decline to renew, under a City Council proposal.

The proposal, known as the Storefront Business Bill of Rights, would cap rent increases during that extra year. It would also require landlords to give tenants advance notice about whether they plan to renew a lease, put leases longer than one year in writing and provide prospective tenants with more information about a storefront before they sign.

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Sponsored by Council Member Gale Brewer, the bill sets different rent caps depending on how much notice the landlord gives. A landlord who provides at least 120 days' notice could raise the rent by no more than 10 percent during the extension. A shorter notice period would limit the increase to 7 percent.

The extension could be shorter if the landlord has already arranged for another tenant to take the space.

Brewer said the bill would give businesses facing a major rent increase or failed renewal negotiations more time to plan their next move.

"We need some teeth for the mom and pops," Brewer said at a hearing.

The Small Business Committee did not vote on the bill.

Haris Khan, the chief of staff at the Department of Small Business Services, said some businesses operate without written leases, including through verbal agreements. In some cases, tenants may hesitate to request a written lease because doing so could prompt a landlord to renegotiate the arrangement.

The bill would require owners to give prospective storefront tenants information about the property before collecting the first rent payment. The disclosures would include the property's certificate of occupancy, two years of past expenses, projected expenses for the next two years and a 10-year history of known violations.

For leases longer than one year, the bill would require a written agreement. The Department of Small Business Services would also make model commercial leases available online, including translations.

Real estate groups have argued the extension could make it harder for property owners to plan around lease expirations and prepare spaces for incoming tenants.

The proposal would apply broadly to qualifying storefronts rather than limiting its protections based on revenue, employee count or number of locations.

The Manhattan Chamber of Commerce has argued that while businesses can struggle during renewal negotiations, an extension would postpone rather than resolve those negotiations.

Brewer has introduced versions of the Storefront Business Bill of Rights in earlier Council sessions. The 2024 version, Introduction 568, ended with the previous Council session without becoming law. Earlier versions also failed to advance.