Zach Steinberg of REBNY testifies on Intro 90 and Intro 874
Zach Steinberg of the Real Estate Board of New York supports Intro 90's transparency provisions but opposes the mandatory lease extension, arguing it disrupts transactions and disadvantages new businesses. REBNY supports Intro 874's voluntary incentive model as a better approach.
Good afternoon, Chair Thomas Henry and Councilman Burr-Brewer.
My name is Zach Steinberg, and I'm testifying on behalf of the Real Estate Board of New York.
Thank you for the opportunity to comment on the legislation before the committee today, and I'll focus my remarks on Intro 90 and Intro 874.
New York's storefront market is healthy.
Small businesses are driving the recovery.
Mom-and-pop businesses are opening and expanding.
Availability is tightening in many corridors, and rents remain below previous highs.
This progress reflects the reality that owners and tenants are not adversaries.
They are partners and work together to ensure that successful storefronts continue to thrive.
Rebney supports aspects of Intro 90, as the bill would help small...
businesses enter lease negotiations with greater information and certainty.
Provisions we support include clear written leases, reasonable advance notice, accessible model documents, access to legal advice, and clear disclosures of property history.
However, we have serious concerns with the provision that allows tenants to unilaterally extend their lease for up to one year when the parties cannot agree on a renewal.
Beyond property right concerns, this could disrupt transactions already underway and delay a new business that has signed a lease, invested in the space, hired employees, and planned around a firm opening date.
It could also make owners more cautious to leasing to newer businesses.
If owners can't rely on the agreed expiration date, they will have more reason to prioritize established, well-capitalized tenants over new restaurants, retailers, and first-time entrepreneurs.
This would undermine the small businesses we are all trying to support.
We believe Intro 874 is a better model.
REBNY supports targeted city incentives that help legacy businesses remain in their communities when owners and tenants voluntarily reach long-term agreements.
That approach incentivizes collaboration without mandating a particular lease outcome.
We urge the Council to preserve Intro 90's transparency notice provisions, remove the mandatory extension, and advance practical voluntary tools like Intro 874 that help small businesses succeed.
Thank you.
Thank you.