CRE Update: Pending Legislation Could Cause Significant Disruption to Commercial Real Estate Sector
Published: August 20, 2024
It is rare for the commercial real estate industry to be the target of legislative reform. Even for a progressive state like California, real estate-focused initiatives tend to focus on promoting housing policies, residential tenant rights, and environmental protections. This year, however, there are three pending bills which could significantly disrupt the commercial real estate sector, potentially causing substantial increase in operating costs that will either undermine already-thin margins for landlords and owners or place more stress on tenants through passed through expenses. The three bills, each of which has passed its house of origin (either the Assembly or Senate), are summarized below. We encourage all of our clients to contact their state legislators to provide feedback regarding the dangers of these initiatives, which we will continue to monitor through the remainder of the legislative session.