Commercial Rental Market Teeters on the Brink

Large numbers of commercial renters in New York City are missing rent, according to reports.

2 minute read

May 26, 2020, 12:00 PM PDT

By James Brasuell @CasualBrasuell


Coronavirus Lock Down

Kit LL / Shutterstock

"Across New York City, commercial tenants are falling behind in rent at unprecedented rates as the coronavirus outbreak has caused a nearly complete lockdown of the city for two months," reports Mathew Haag.

While Haag doesn't share citywide statistics to illustrate the scope of the problem, several organizations in the city have large sample sizes to report. For instance, the Community House Improvement Program, which represents around 4,000 landlords of rent-stabilized apartment buildings, reported that among its members who also have commercial tenants, "two-thirds of those tenants did not pay rent in April and May." (That figure compares to 25 percent of residential tenants missing rent in the same group.)

Moreover, "Vornado Realty Trust, one of the city’s biggest commercial landlords, said that nearly all its retail clients with the exception of grocery stores and other essential businesses have sought financial relief, such as a deferral on rent payments," reports Haag.

According to Haag, the number of commercial renters falling behind outpaces the residential rental market, which faces its own crisis of deferred payments, and the entire commercial market is at a breaking point. The effects of the worsening crisis for commercial renters could have catastrophic consequences for the city. 

If building owners cannot come up with enough money to pay their next property tax bill in five weeks, a deadline the city has refused to postpone, the city will be starved of an enormous revenue stream that helps pay for all aspects of everyday life, from the Fire Department to trash pickup to the public hospitals. It could lead to a bleak landscape of vacant storefronts and streets sapped of their energy.

Thursday, May 21, 2020 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

Brick school building with mid-sized tree on front lawn.

Alabama School Forestry Initiative Brings Trees to Schoolyards

Trees can improve physical and mental health for students and commnity members.

47 seconds ago - Governing

Row of outdoor dining kiosks in New York City during Covid-19 in winter. Kiosks are enclosed with plastc or plexiglass.

NYC Outdoor Dining Could Get a Re-Do

The city council is considering making the al fresco dining program year-round to address cost concerns from small businesses.

1 hour ago - StreetsBlog NYC

Millbrae BART station.

HSR Reaches Key Settlement in Northern California City

The state’s high-speed rail authority reached an agreement with Millbrae, a key city on the train’s proposed route to San Francisco.

April 24 - San Diego Post