Commercial Rent Control?
The city council heard testimony this week about a long-debated proposal to regulate commercial rental negotiations. Concerned about rising rents and empty storefronts, advocates want to impose order on what they see as a chaotic and destructive system controlled by greedy landlords. But the last thing New York City needs is another layer of rent control, which has failed to create a healthy residential market.
The Facts You Need to Know
Advantage: A study by a liberal state senator concluded that there is no truth to the widespread allegation that landlords enjoy tax benefits from keeping properties off the market. Read more.
Vacant: Retail vacancy rates have risen across the country, in part because of technology-induced changes to how people shop. Read more.
Control: New York City’s 70-year experiment with residential rent regulation has distorted the market and prolonged a housing shortage. Read more.
“This bill might actually drive rents up because landlords will anticipate the costs of arbitration into leases.”
This may not be a popular thing to say, but: A lot of the SBJSA conversation seems to be driven by folks who are largely looking at Manhattan's higher-income neighborhoods as the example of why it's necessary (see: Corey Johnson talking incessantly about Tortilla Flats)...— Amy Plitt (@plitter) October 22, 2018
The Past is Present
“Suffocating regulations force another popular New York City business to close its doors.”
And in other news...
“Almost anything, it seems, that keeps shoppers on their toes is viable. That includes exclusive merchandise (will this location carry that handbag?), pop-up shops (will this store be here next week?) and experiences (can I eat or drink or post as well as shop?).”