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Below are key bills introduced in 2025 that could significantly impact the commercial real estate industry. While hundreds of bills introduced may have some effect, these have been identified as top priorities due to their potential impact.

AB 1435 (Nguyen; D-Elk Grove)

Clean Up Relief Act of 2025 - Support – Sponsored

AB 1435 creates a tax credit for businesses to cover 100% of cleanup costs for unauthorized encampments and illegal dumping. While businesses can currently deduct these expenses as a business cost, the persistent financial burden of repeated cleanups requires additional relief. This bill ensures that property owners have the necessary resources to maintain safe and accessible commercial spaces.

Status: Referred to Assembly Committee on Revenue and Taxes. Placed on suspense file. 

VIEW FACT SHEET VIEW INFO ON PRESS CONFERENCE & MEDIA COVERAGE

AB 588 (Patel; D-San Diego) 

Boosts EV Fire Safety Support – Sponsored

AB 588 creates a lithium battery safety working group to provide clear fire safety guidance as EV charging and battery storage expand across California. With no statewide standards, property owners and officials face inconsistent regulations and risks. The bill ensures experts develop best practices to enhance safety, streamline compliance, and support smart clean energy investments in commercial real estate. 

Status: Currently in the Assembly Committee on Emergency Management. 

VIEW FACT SHEET VIEW PRESS RELEASE

SB 789 (Menjivar; D-Van Nuys) 

Commercial Vacancy Tax - Oppose 

SB 789 initially proposed a statewide vacancy tax on commercial real estate, imposing a $5 per square foot tax on properties deemed "vacant." This tax would have penalized property owners during economic uncertainty and risked further destabilizing struggling markets. After significant pushback from stakeholders, including many of our members, the bill has been substantially amended to remove the proposed vacancy tax. While this change marks important progress, we remain opposed to the bill. As amended, SB 789 now requires owners of non-residential property to annually report vacancy details—including the number of vacant days, reasons for vacancy, and any ongoing renovations—to the California Department of Tax and Fee Administration. Property owners who fail to report would face state-imposed penalties.

Status: Referred to the Senate Committee on Revenue and Taxation. 

AB 380 (Gonzalez; D-Los Angeles)

Commercial Rent Control In Emergencies - Oppose

AB 380 amends Penal Code Section 396 to impose stricter controls on price increases of essential goods and services, such as food, housing, fuel, and medical supplies. The bill limits rent increases to 10% in declared emergencies.

Status: Referred to Assembly Committee on Appropriations. 

SB 709 (Menjivar; D-Van Nuys) 

Storage Property Rent Control - Oppose 

SB 709 mirrors past attempts at government-imposed rent control which would impose price caps on self storage lease agreements, creating uncertainty for property owners, and imposing a hardship for companies to cover operating costs. 

Status: Referred to Senate Judiciary Committee. 

SB 522 (Wahab; D-Fremont)

Mixed-Use Investment Deterrent - Oppose

SB 522 disincentivizes redevelopment by imposing long-term rent control obligations on newly rebuilt properties.

Status: Referred to Senate Committee on Local Government.

AB 246 (Bryan; D-Los Angeles)

LA Rent Control - Oppose 

AB 246 undermines the Costa-Hawkins Rental Housing Act, disincentivizes investment, and exacerbates financial strain on property owners already impacted by recent disasters.

Status: Referred to Assembly Judiciary Committee. 

SB 415 (Reyes; D-San Bernardino) & AB 735 (Carrillo; D-Palmdale) 

AB 98 Fix Bills - No Position 

SB 415 and AB 735 are key cleanup bills related to the new warehouse development law AB 98. 

Status: SB 415 has been referred to the Senate Local Government Committee and AB 735 has been referred to the Assembly Local Government Committee. 

Protecting commercial real estate for over 50 years

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