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  1. #1
    Join Date
    Apr 2011
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    1

    Default Commercial Landlord Has Two of the Same Business Types in Same Strip Mall

    My question involves real estate located in the State of: NEW YORK

    Jurisdiction: New York

    I own a mom and pop retail store in NYC (beauty supply shop). My commercial landlord has just rented out the space next to mine to a similar retail store (pharmacy/drugstore - almost like a CVS). They carry similar items as we do as the two stores are in the same business industry. Thus, due to the landlord's desperate attempt to fill his empty store space, I now suffer tremendously in making any sort of profit and this has adversely affected my business. There is fierce competition for customers.

    This is the general concept of what has gone occurred. If more precise details are needed, I will supply them. I do understand this is a capital market that advocates competition. But, is there some law/rule about a commercial landlord leasing out to multiple retail stores that are similar/identical in products sold, in the same strip mall area, owned by the same LL, that adversely affects the tenants?

    Please help as this seems willfully done, and I want to know if I have any legal recourse. Thank you in advance.

  2. #2
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: Commercial Landlord Has Two (2) of the Same Business Types in Same Strip Mall

    Quote Quoting nyy1150
    View Post
    My question involves real estate located in the State of: NEW YORK

    Jurisdiction: New York

    I own a mom and pop retail store in NYC (beauty supply shop). My commercial landlord has just rented out the space next to mine to a similar retail store (pharmacy/drugstore - almost like a CVS). They carry similar items as we do as the two stores are in the same business industry. Thus, due to the landlord's desperate attempt to fill his empty store space, I now suffer tremendously in making any sort of profit and this has adversely affected my business. There is fierce competition for customers.

    This is the general concept of what has gone occurred. If more precise details are needed, I will supply them. I do understand this is a capital market that advocates competition. But, is there some law/rule about a commercial landlord leasing out to multiple retail stores that are similar/identical in products sold, in the same strip mall area, owned by the same LL, that adversely affects the tenants?

    Please help as this seems willfully done, and I want to know if I have any legal recourse. Thank you in advance.
    Generally, if you want a prohibition of the LL renting to someone in the same business, this should be included in the lease, and you should of thought of this when you go into the lease. Often, there IS something to that effect in the lease. There is NO LAW that says that if he rented a store to you, he cannot rent to another store that carries some of the same products.

    Now, there's usually some gentlemen's agreement where if the LL rents to a beauty supply, he's not going to rent to another beauty supply shop in the same strip. This makes perfect business sense as you'll have two retails stores not being able to make it. But if he rents to a drugstore that also happens to sell some hairspray, you cannot now demand they stop carrying hair spray because you do, that is, unless it is stated in the lease. If you expand this logic, you can go over see what they carry, you come back to carry it, then complain they can't carry the same stuff because you were there first.

    Then, the cycle never ends.

    Across the street from where I work, there's a 7-11 type delicatessan selling coffee, soda, and snacks. Then, a Chinese bakery came in next store, also selling coffee, soda in bottles, some snacks, and the delicatessan's morning coffee business went down, waaay down. Now, they are not really in the same business, but for the fact they both sell coffee. I can't see how the deli guy is going to tell his landlord the bakery can't sell any coffee because he was there first. And I can't see him making the case that they are the same business because they're not. The deli guy sells umbrellas, lotto tickets, Brillo pads, etc. and the Chinese bakery doesn't.

    And I'm not going to stand on line in the deli for coffee, then go to the Chinese bakery, wait on another line for my favorite pork buns just to keep these two guys in business. Sorry.

    But the deli guy's been complaining about the Chinese bakery, and I can't blame him.

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