Commercial Arbitration
NY Real Estate Commercial Litigation: Commercial Arbitration (Rent Rests & Property Valuations)
Understanding Commercial Arbitration
Commercial leases—especially long-term ground leases and retail leases—often include rent reset clauses, which require periodic recalculations of fair market rent. When parties cannot agree on a new rent figure, the matter is frequently submitted to arbitration, relying on appraisals and expert testimony to determine current market value.
Similarly, disputes involving property valuations arise in:
- Lease renewals with market rent adjustments
- Partnership or joint venture dissolutions
- Buy-sell agreements tied to appraised value
- Development rights transfers and air rights valuations
- Disagreements over capital improvements and value impacts
Arbitration proceedings in these matters are often governed by the lease or contract language, which may dictate procedural rules, the number of arbitrators, the selection of appraisers, and whether a “baseball arbitration” (final offer only) or traditional hearing model applies. While arbitration can offer speed and confidentiality, these cases are often document-intensive and hinge on detailed real estate market analysis.
How Our Attorneys Can Help
At Schwartz, Conroy & Hack, PC, we represent commercial landlords, tenants, developers, and investors in high-stakes arbitration proceedings involving rent resets, valuations, and related commercial real estate matters. Our attorneys work closely with appraisers, brokers, and valuation experts to build compelling presentations that align with market realities and contractual expectations.
We also advise clients during lease negotiations and drafting to ensure future rent resets and valuation disputes are governed by fair, transparent, and enforceable provisions.
If you are facing a valuation dispute or arbitration concerning rent resets or property value, our team is equipped to guide you through the process and protect your economic interests.
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