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 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

34 minutes ago - Newsweek

Close-up on woman in white and blue striped knee-length dress standing next to mint green cruiser bike resting against low wrought iron fence in front of green lawn.

Paris Voters Approve More Car-Free Streets

Paris Mayor Anne Hidalgo says the city will develop a plan to close 500 streets to car traffic and add new bike and pedestrian infrastructure after a referendum on the proposal passed with 66 percent of the vote.

1 hour ago - domus

Close-up of man in manually operated wheelchair waiting at urban crosswalk.

Making Mobility More Inclusive

A new study highlights the challenges people with disabilities continue to face in navigating urban spaces.

2 hours ago - Greater Good Magazine

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.