Nov. 27, 2020
The coronavirus pandemic has upended a longstanding premise of New York City co-op and condo economics: commercial space that was once viewed as a cherished cash cow has, virtually overnight, become an albatross. With many businesses shuttered or struggling, co-op and condo boards have seen a sharp drop in rental income from their commercial tenants. That drop, in turn, is forcing many boards to choose between two distasteful options: impose a short-term assessment, or raise residents’ monthly charges.
“It used to be that having a commercial unit was a boon to the residential units,” Leni Morrison Cummins, a member at the law firm Cozen O’Connor, tells The Real Deal. “Coronavirus has sort of shifted that paradigm. If you have 15% of the building not paying, that means the other 85% has to pick that up.”
For every co-op shareholder and condo unit-owner,