Landlord Entitled Only to Reasonable Value of the Premises During Holdover Tenancy

On March 10, 2021, the Second Department issued a decision in Riesenburger Props., LLLP v. Pi Assoc., LLC, 2021 NY Slip Op. 01435, holding that a landlord was only entitled to the reasonable value of a premises during a holdover, explaining:

However, as the plaintiff correctly concedes, it was not entitled to recover excess rent for the period following the termination of the lease. Since the Supreme Court determined that the lease terminated effective December 1, 2014, Pi Associates and 3909 Main became holdover tenants as of that date. The damages attributable to those defendants' continued occupation of the premises after that date were not due under the lease, but, rather, were properly awarded by the court as use and occupancy for the reasonable value of the premises, in an amount to be determined upon referral to a referee to hear and report. Consequently, the plaintiff is only entitled to recover excess rent for the period from August 1, 2011, through November 30, 2014. For that period, we find that the plaintiff demonstrated at trial that it was entitled to excess rent in the principal sum of $511,840, and we modify the judgment accordingly.

(Internal citations omitted).

We frequently litigate disputes over the sale or leasing of commercial property. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you are involved in a dispute regarding a commercial real estate transaction.