Commercial Tenant Eviction in New York (Legal Process)

The eviction of a commercial tenant occurs when a landlord requests the removal of a tenant from a commercial property. The landlord must have a specific and justifiable reason why the tenant needs to be evicted or removed from the property.

An eviction may be necessary for a number of reasons, for example, if a commercial tenant refuses to or stops paying their rent. Except for not paying rent, the reasons a commercial tenant can be evicted may vary depending on the laws of the jurisdiction and the terms of the individual commercial contract.

The protections that are provided to commercial tenants under New York state commercial lease law are stronger than those that are provided in other states. Some examples of those protections provided to commercial tenants include:

• The right to be free from discrimination;
• The right to be free from harassment by the commercial landlord;
• The right to be free from acts that produce waste or cause urban blight;
• Protection against recurring frivolous legal actions;
• Protection against unnecessary and repeated acts that interfere with the commercial tenant’s business.

If an individual has any questions regarding evicting a commercial tenant in New York, they should consult with an attorney in New York.

What Is a Commercial Tenant?

Commercial tenants are entities or individuals that rent real estate for the specific purpose of doing business or conducting other commercial activities. For example, a commercial tenant tends to rent property in certain types of locations, such as office space, restaurants, and malls.

This is in contrast to a residential tenant who usually rents out a place to reside, such as a house, apartment, or other similar property. Generally, organizations and businesses are considered to be more sophisticated than residential tenants.

Because of this, commercial tenants will often be provided fewer legal protections and rights under the applicable laws. This means that commercial tenants have to be extra careful when renting property from a commercial landlord.

How Long Does It Take To Evict a Commercial Tenant?

In New York, evicting a commercial tenant can take anywhere from a few weeks to several months, depending on the situation. In general, however, commercial evictions are typically faster than residential evictions.

Are There Any Defenses Under New York Commercial Tenant Law?

Generally, the majority of defenses and commercial tenant rights in New York will be provided in the terms of the commercial lease agreement. In New York specifically, the law will assume that if an obligation or a right is not included explicitly in the commercial contract, then it most likely is not enforceable.

This means that, despite being provided stronger protections than in other states, commercial tenants in New York are still limited in their defenses. Examples of defenses that a commercial tenant may be able to raise under New York commercial tenant laws include:

• Lack of proper notice: A landlord may fail to notify the commercial tenant, such as by providing the three-day notice about an eviction or does not allow them three full days to remedy an issue. In this case, the tenant may be able to raise this as a defense;
  • Courts also typically prefer that a landlord exhaust all other available remedies before filing for eviction;
• Improper eviction: A commercial landlord might attempt to forcibly remove a tenant themselves, or a landlord might fail to follow the proper legal requirements for evictions in New York state. If this is the case, then the commercial tenant may argue that their landlord tried to improperly evict them;
  • For example, a landlord who wishes to evict a commercial tenant in New York must provide specific reasons, including that the tenant:
    • Failed to pay rent for the allotted or an extended period;
    • Created a public nuisance;
    • Held over long after a lease has expired;
    • Violated the terms of their commercial lease agreement;
• Retaliatory eviction: This defense is not as common in actions for commercial tenant evictions as it is in actions for residential property evictions. However, a commercial tenant may still raise retaliatory eviction as a defense. This can occur if they can prove that their landlord is trying to evict them because they rightfully complained about an issue that affects their property, for example, no heat in a building during the winter;
• Landlord in breach: A commercial lease agreement is the controlling document in an eviction proceeding. Because of this, a commercial tenant may be able to avoid being evicted if they can show that the landlord breached a condition of their commercial lease agreement;
• Landlord interferes with commercial property: New York has specifically made it a crime for a landlord to intentionally interfere with services that are deemed to be of “proper and customary” use in a particular building;
  • For example, a commercial tenant may refuse to pay rent if their business relies on a working freight elevator and the freight elevator is out of order, despite repeated requests to have it repaired; and
• Landlord discriminates against tenants: The Fair Housing Act is a federal law that makes it illegal to discriminate against a commercial tenant based on their race, origin, gender, disability, and other characteristics. Therefore, if a landlord attempts to evict a commercial tenant based on a discriminatory reason, then the tenant can raise the protections afforded by the Act as a defense.

Are There Any Remedies for a Commercial Tenant Eviction Violation?

The remedies that may be available for a commercial tenant eviction violation will depend on several factors, including:

• The eviction laws in the state;
• The facts of the case;
• Any defenses that were raised and whether or not they were successful.

Possible remedies that may be available to commercial tenants following an eviction violation include:

• Monetary damages;
• Legal permission to remain on the property;
• An extension of the time they have to remedy their own violations.

The commercial lease may also contain provisions that govern what remedies may be available in certain situations. In addition, commercial tenants may also enjoy other rights that may provide them with remedies. These include the right to have certain issues repaired, such as water supplies, electrical connections, etc., and the right to receive a rent reduction or cancellation if an entire commercial property goes out of business, referred to as going dark rights.

Do I Need an Attorney for Help with a New York Commercial Tenant Eviction Issue?

If you have any issues, questions, or concerns related to evicting a commercial tenant in The State of New York, it is essential to consult with a New York landlord-tenant lawyer. Detailed and complex laws govern commercial real estate issues and often require legal assistance to resolve.

Your lawyer can advise you on and assist you with the proper steps to evict your commercial tenant in New York to help ensure your eviction is as efficient as possible. Your lawyer can also help you draft rental agreements to protect your rights as a landlord.

If you are the commercial tenant, your landlord can advise you regarding your rights under the law and defenses that may be available to you. It is important to have your lawyer review any commercial lease before you sign it to ensure that your rights are protected.