NY S05326

Establishes a mandatory mediation and binding arbitration process for commercial lease renewals in New York City, applying to leases expiring on or after July 1, 2020.

Requires landlords to provide 180 days' notice before lease expiration and allows 90 days for negotiation, followed by mediation if either party requests it; if no agreement is reached, either party may pursue arbitration.

Limits landlords' grounds for refusing lease renewal to eight specific conditions including persistent late rent payment (after three notices), illegal activity, substantial lease breaches, good faith demolition/reconstruction, unlawful subletting, tax violations, and landlord self-occupancy (with compensation requirement for different business types).

Directs arbitrators to set renewal rent based on factors including property maintenance costs, services provided, market comparables within one mile, 10-year rental history, speculation trends, business longevity, and the tenant's capital improvements.

Restricts security deposits to two months' rent held in interest-bearing escrow accounts, prohibits landlord retaliation against tenants asserting rights under the law, and voids any lease waiving tenant protections under this chapter.