Senator Salazar and Assembly Member Gallagher Introduce Legislation to Stabilize Rent for NYC Small Businesses

Julia Salazar

February 17, 2026

Press Contact:    

Shafeeqa Kolia | skolia@nysenate.gov

 

Albany, NY –  State Senator Julia Salazar and Assemblymember Gallagher have introduced the Small Business Survival Act (S8319 / A5568A) to prohibit unaffordable rent hikes and guarantee lease renewals for small businesses in New York City.  

  

State Senator Julia Salazar: “The Small Business Survival Act would be a lifeline for small businesses in New York City by capping outrageous rent hikes and guaranteeing lease renewals. Corporate landlords are charging rents so high that the only business owners who can afford to pay are corporate chains. Or, they’re keeping storefronts vacant until larger, wealthier tenants come along. This is a toxic and now commonplace pattern that is shuttering our local businesses, putting New Yorkers out of work, and turning our vibrant neighborhoods into chain malls.”  

  

Assemblymember Emily Gallagher: “Small businesses are what make New York special, but they are increasingly being pushed out by greedy corporate actors. In the 20 years I’ve been in my neighborhood, I’ve seen so many beloved businesses close because of unaffordable rents or because big landlords would rather wait for a corporate chain to come along. With the Small Business Survival Act, we will cap rent, guarantee leases, and ensure our community businesses are actually owned by the members of our community.”  

 

Olympia Kazi, urban activist: “I want to thank State Senator Julia Salazar and Assembly Member Emily Gallagher for introducing this critical legislation to enact a common-sense, fundamental protection for commercial tenants. For more than half a century, communities have fought to defend beloved small businesses, nonprofits, and cultural institutions from displacement and erasure. With renewed leadership in New York State and New York City that centers affordability and justice, I am hopeful—and confident—that the moment to pass commercial rent stabilization has arrived.” 

 

Small Business United, a new small business organizing coalition: “Small businesses are struggling to survive in New York City because they cannot keep up with continuously rising costs, including the rising cost of rent. This crisis is the result of treating commercial space as a commodity to make corporate real estate companies richer, rather than as community infrastructure to support our neighborhoods. New York must pass the Small Business Survival Act before our local business owners are forced to close their doors and seek opportunities elsewhere.”  

 

The Small Business Survival Act (S8319 / A5568A):  

What it does:  

  • Creates the Commercial Rent Guidelines Board to set maximum annual rent increases for commercial tenants  
  • Provides lease renewal rights with a default 10-year renewal term  
  • Protects at-will tenants with the right to request a written lease  
  • Applies to all leases and rental agreements for commercial spaces  
  • Enforces compliance through strong penalty provisions against overcharges and tenant harassment  

  

What it doesn’t do:  

  • Freeze rents entirely or roll back existing rents  
  • Prevent landlords from making a fair return  
  • Apply retroactively to existing leases  

  

Why We Need the Small Business Survival Act:  

  • Only corporate chains are surviving. Commercial rents are being raised to levels only national and global chains can afford, effectively pricing local businesses out. Corporate chains can also absorb long vacancies and short-term losses; small businesses cannot.  
  • Vacancy is incentivized. Currently, landlords can profit more from vacancy than from renting to local businesses, and tax write-offs on vacant properties mean landlords face little penalty for keeping storefronts empty.  
  • The upward mobility ladder is breaking. Small businesses have been the entry point to American economic success for generational New Yorkers and newcomers alike. When rent doubles overnight, it doesn't just close a business — it derails generational wealth building.  

 

By the numbers:  

  • 8,400 businesses closed in Q2 2025.  
  • 12% of NYC storefronts are currently vacant.   
  • 47% of New York workers are employed by small businesses. 
  • 1 in 5 storefronts in Manhattan are vacant.

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