New York Lawmakers Propose Commercial Rent Stabilization Bill

State Sen. Julia Salazar and Assemblywoman Emily Gallagher introduce legislation to regulate commercial rents and protect small businesses.

Published on Feb. 25, 2026

Got story updates? Submit your updates here. ›

New York state lawmakers have introduced the "New York City Small Business Rent Stabilization Act" that would create a Commercial Rent Guidelines Board to establish rules for raising rents on non-chain retail tenants and provide options for renewing lease terms. The bill aims to protect small businesses from rising rents, but has faced criticism from real estate groups who argue it could reduce property values and discourage investment.

Why it matters

The proposed commercial rent stabilization legislation is an attempt to address the ongoing challenges faced by small businesses in New York City, which have been exacerbated by the economic impacts of the pandemic. While proponents argue it will help protect vulnerable small businesses, critics warn it could have unintended consequences like discouraging landlords from renting to mom-and-pop shops in the first place.

The details

The bill would amend the New York City Administrative Code to create a Commercial Rent Guidelines Board with nine members appointed by the mayor. This board would establish rules for raising rents on non-chain retail tenants and provide options for renewing lease terms. The legislation would apply not only to direct lease tenants, but also subtenants and sublandlords.

  • The bill was introduced in the state legislature in June 2026 and is currently winding its way through senate committees.
  • A previous version of the legislation, known as the Small Business Jobs Survival Act, has been introduced and failed to pass at the city level for over 30 years.

The players

Julia Salazar

New York state senator who co-introduced the "New York City Small Business Rent Stabilization Act".

Emily Gallagher

New York state assemblywoman who co-introduced the "New York City Small Business Rent Stabilization Act".

Frederick Betesh

Senior sales and leasing broker at Tri State Commercial Realty who criticized the proposed bill, arguing it would reduce property values and discourage investment.

James Wacht

Managing principal at Lee & Associates who warned the legislation could discourage property owners from renting to mom-and-pop tenants in the first place.

John Banks

Former president of the Real Estate Board of New York (REBNY) who was a vocal critic of the previous Small Business Jobs Survival Act.

Got photos? Submit your photos here. ›

What they’re saying

“The proposed commercial rent stabilization bill would reduce property values, tighten lending, and discourage investment. By capping rent growth and limiting lease flexibility, it increases regulatory risk and weakens asset performance.”

— Frederick Betesh, Senior sales and leasing broker at Tri State Commercial Realty (LinkedIn)

“This legislation may also discourage property owners from renting to mom-and-pop tenants in the first instance, given the potential inability to replace them at lease expiration if an owner seeks to upgrade a building or reposition the retail mix. That unintended consequence could directly impact my own ability to secure retail space for my businesses and would ultimately make it harder — not easier — for small operators to find locations.”

— James Wacht, Managing principal at Lee & Associates (Statement)

“We are vehemently opposed to this legislation which will do nothing to solve the underlying issues behind storefront vacancies and instead would have a catastrophic impact on our local economy.”

— John Banks, Former president of the Real Estate Board of New York (REBNY) (New York City Council hearing in October 2018)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This proposed commercial rent stabilization legislation highlights the ongoing tension between protecting small businesses and maintaining a healthy real estate market. While proponents argue it is necessary to support vulnerable local retailers, critics warn it could have unintended consequences that ultimately make the situation worse for small businesses.