Learn who we are and how we serve our community
Meet our leaders, trustees and team
Developing the next generation of talent
Covering the latest news and trends in the marketplaces industry
Check out wide-ranging resources that educate and inspire
Learn about the governmental initiatives we support
Connect with other professionals at a local, regional or national event
Find webinars from industry experts on the latest topics and trends
Grow your skills online, in a class or at an event with expert guidance
Access our Member Directory and connect with colleagues
Get recommended matches for new business partners
Find tools to support your education and professional development
Learn about how to join ICSC and the benefits of membership
Stay connected with ICSC and continue to receive membership benefits
The New York Assembly recently passed A.B. 6906, legislation that would require landlords to mitigate damages when commercial tenants vacate premises before the expiration date of a lease. Before the legislature adjourns on June 10 it is possible that a companion bill, S. 1129, sponsored by Senator John Liu (D-11th District) will be voted on in the State Senate. The legislature is trying to extend to commercial landlords/tenants a law enacted in 2019 for residential settings.
“Unfortunately, this lopsided measure targets landlords who are already facing significant losses in revenue due to the pandemic and ignores the fact that commercial property owners are motivated to lease premises to new tenants as quickly as possible,” Betsy Laird, ICSC senior vice president, Global Public Policy, said.
The bill also upends contract law by requiring landlords to potentially accept lower rents than what the defaulting tenant had agreed to pay and jeopardizing any claim against the departed tenant for a shortfall in rent obligations. Additionally, the legislation specifies that the landlord shall take “reasonable and customary actions” to rent the premises at a comparable or lesser rate. The onus to comply with this vague language is on the landlord. As drafted, S. 1129 shifts all the burden to the commercial landlord, allowing the tenant who violated the lease the opportunity to ignore contractual obligations.
“There is no question mandated COVID-19 closures deeply impacted businesses in New York – landlords and tenants alike. S. 1129, however, fails to recognize this or consider that many commercial landlords are small businesses themselves,” Laird said. “The legislature must realize the implications of taking away traditional remedies from landlords and allowing commercial tenants to waive their contractual obligations, regardless of whether they received assistance from their landlords, the state or federal government.”
ICSC is asking members with businesses in New York to click here to urgently contact their state senators and express their opposition to this measure.