Sale of Commercial Unit by Co-op

The co-op will need to get a letter of "reasonable relationship" to establish and justify the number of shares that should be allocated to that commercial space. The shares are transferred to the buyers upon sale, and from then on the commercial tenant will pay monthly maintenance based on the number of shares they were allocated, just like every other shareholder in the building. There is no more "rent". No special rules or classes can be established for commercial tenants. If the commercial tenant has a very large number of shares, keep in mind that they will gain a significant amount of power when it comes to voting. They will have all rights other residential shareholders have, so the co-op will lose some power over the tenant in exchange for what will likely be a one-time cash windfall when they sell the shares. The maintenance the commercial tenant pays will rise as the maintenance of the other shareholders rises - no more, no less. This can be a tricky process. Co-ops that consider this generally do so because they need the cash infusion that the sale of the additional shares will bring. There are other points/factors, but these are some highlights.