NY A05155

Establishes a mandatory mediation and arbitration process for commercial lease renewals in New York City, applying to leases expiring on or after July 1, 2018.

Requires landlords to provide 180 days' notice before lease expiration and allows a 90-day negotiation period, followed by optional mediation and binding arbitration if parties cannot agree on terms.

Sets minimum renewal lease term at 10 years (unless parties agree otherwise) and establishes limited grounds for landlords to refuse renewal, including persistent late rent payment, illegal activity, substantial breach, demolition/reconstruction, and good-faith owner occupancy.

Directs arbitrators to set renewal rent based on 13 specific factors including property maintenance costs, comparable market rates, business longevity, location, and evidence of real estate speculation in the area.

Limits security deposits to two months' rent held in escrow with interest, and prohibits landlord retaliation against tenants exercising rights under the law, with treble damages available for fraudulent lease non-renewal claims.