Five Chamber Alliance unites to protect local corridors from misguided commercial rent mandates

 

NEW YORK, NY – February 25, 2026 – The NYC Five Chamber Alliance, which represents the Chambers of Commerce across the Bronx, Brooklyn, Manhattan, Queens, and Staten Island, stands united in expressing deep concern regarding the recently reintroduced "Small Business Rent Stabilization Act" (S8319 in the State Senate and A5568 in the State Assembly).

While the Alliance deeply shares the goal of helping New York City's mom-and-pop shops thrive, they firmly state that commercial rent control is not a realistic or viable option. Instead, the Alliance describes the proposed legislation as a "red herring" that offers a false solution to the affordability crisis.

The True Burden on Small Businesses

The Alliance emphasizes that small businesses face complex, real-world challenges that make operations incredibly difficult today. The true burdens on these establishments stem from skyrocketing operational costs, which include:

• Aggressive new wage mandates.
• Rising insurance premiums and utility rates.
• An increase in fines and violations.
• Ongoing public safety and sanitation issues.

Impact on Property Owners and Local Entrepreneurs

Furthermore, the Alliance notes that the majority of commercial landlords are small businesses themselves. These property owners are facing the exact same operational cost pressures, compounded by the heavy burden of rising property taxes.

If passed, the legislation would introduce severe mandates, including the creation of a commercial Rent Guidelines Board and government-mandated 10-year lease renewals. This would force property owners into an impossible bureaucratic maze just to rent out a storefront.

Faced with blanket price controls and the inability to manage their properties, landlords will be significantly less likely to lease to new entrepreneurs, local startups, or independent small businesses. The Alliance warns of the unintended consequences of this legislation:

• Property owners will be incentivized to hold out for well-capitalized national chains with pristine credit.
• Landlords may choose to leave storefronts vacant rather than being locked into rigid, decade-long government leases.
• Ultimately, local entrepreneurs will become the victims, finding themselves entirely shut out of the market.

A Call for Collaborative Solutions

The Alliance argues that placing blanket price controls on commercial real estate will do nothing to solve the root problems facing New York City communities. Having seen the disastrous effects of heavy-handed market interference in the past, the Alliance refuses to let those mistakes be repeated on their commercial corridors.

The Five Chamber Alliance urges the state Legislature and the Mayor to reject this misguided proposal before it gains any further traction. The Chambers stand eager and ready to collaborate with elected officials on serious, effective, and community-focused solutions to reduce storefront vacancies. However, they maintain that commercial rent control is a "dead end for New York City's economic recovery".