Can a Landlord Evict due to Insurance Regs Non-Compliance

Yes. Several judicial decisions uphold the lease rights of landlords to evict their commercial tenants for failing to obtain the required insurance coverage policies. Moreover, the lease provisions are closely read, and NYC commercial tenants are held to exact standards. In one example, the insurance obtained correctly listed the commercial landlord as a named insured […]

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Bank Failures – What Happens if My Landlord Goes Bankrupt?

There have been a couple of bank failures recently, and some are uncomfortable signs that the banking system is under stress. Nothing too much more may happen, but attention to the ongoing trends is warranted. There is a connection between bank failures and commercial leasing only because most real estate properties are purchased with significant […]

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Some Tips on NYC Commercial Leasing and Illegal Activities

Recreational use and possession of smaller amounts of cannabis/marijuana have been legal in NYC since 2019. But selling marijuana for personal use remains illegal unless the business is properly licensed. The problem is that only 37 retail outlets have been approved for New York. See the Bloomberg media report here. The constraint on legal cannabis […]

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Is a “Liquidated Damages Clause” Enforceable in NYC?

In some contracts, including NYC commercial leases, a clause will be included that is generally called a “liquidated damages” clause. A liquidated damages clause is agreed to in advance by the parties to a commercial lease and identifies a specific amount of money that will be owed by one party to the other if the […]

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Office-to-Residential Conversions-what you need to know

Over the last couple of years, there has been a continuing stream of media articles discussing legal and industry trends concerning the conversion of office buildings into residential buildings. For example, in November 2021, Politico ran an expansive, detailed, and interesting article on office-to-residential conversions called “Cities with empty offices see new room to expand […]

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NYC Commercial Lease Litigation: Do Landlords Have a Duty to Mitigate Damages?

Under current New York law, commercial landlords have no duty to mitigate damages if a commercial tenant breaks the lease. In this circumstance, mitigating damages generally means an obligation on the part of a landlord to re-rent the space. This decreases — mitigates — the landlord’s damages from a tenant breaking the lease since the […]

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Now may be the Time to Lease Space due to Large Retail and Office Vacancies

If you have been thinking of starting your own business in New York City, now may be the time since NYC remains “awash with space,” as reported in this NY Post media article. From the report, Manhattan availability rates continue to hover around 17%, and average asking rents are around $75 per square foot. As […]

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NY Eminent Domain and Commercial Lease Provisions

There was an interesting article in TheRealDeal — see here — about the New York town of Southhold’s efforts to use the power of eminent domain to seize property in the Town owned by Brinkmann Hardware. The site in question is about 1.75 acres along the main street in Southold. Brinkmann Hardware bought the property in 2016, […]

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Negotiating Your NYC Commercial Lease: Rent Escalation Clauses and Inflation

Unless it is a short-term lease, every New York City commercial lease contains at least one rent escalation clause. There are several types, but, in general, these clauses increase the rent — and other tenant payment obligations — on a fixed schedule (which is often yearly). This article includes topics for commercial litigation, landlord-tenant, and […]

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