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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.

SPONSORED BILLS

AB 1435 (Nguyen; D-Elk Grove) - DEAD

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: HELD IN ASSEMBLY REVENUE & TAXATION COMMITTEE

VIEW FACT SHEET VIEW INFO ON PRESS CONFERENCE & MEDIA COVERAGE

AB 588 (Patel; D-San Diego) - DEAD

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: HELD IN ASSEMBLY APPROPRIATIONS COMMITTEE

VIEW FACT SHEET VIEW PRESS RELEASE

PRIORITY OPPOSE

AB 380 (Gonzalez; D-Los Angeles) – Commercial Rent Control During Emergencies

AB 380 proposes sweeping changes to California’s emergency price gouging laws by applying them to commercial leases. The bill would override negotiated contracts, cap rent increases during declared emergencies, ban evictions even for nonpayment, and prevent property owners from recovering increased costs due to insurance, taxes, or emergency repairs. It also authorizes local governments to extend these restrictions indefinitely, creating long-term market uncertainty. CBPA is leading a coalition of over 25 business group in opposition, warning of severe disruptions to California’s commercial leasing market and serious risks for property owners.
STATUS: PASSED ASSEMBLY, NOW HEADS TO SENATE

2025 LEGISLATIVE WINS (SO FAR)

SB 789 (Menjivar; D-Van Nuys) – Commercial Vacancy Tax
Initially proposed a $5/sq ft tax on vacant commercial properties. Due to opposition, the tax was removed, but a vacancy reporting requirement remained. Continued advocacy helped defeat the bill.
STATUS: DEAD

AB 863 (Kalra; D-San Jose) – Lease Translation Mandate
Originally required translated eviction notices and court documents, unintentionally including commercial leases. CBPA opposed the bill, prompting Assemblymember Kalra to clarify and commit to removing commercial properties.
STATUS: COMMITMENT SECURED TO REMOVE COMMERCIAL

SB 709 (Menjivar; D-Van Nuys) – Rent Regulation in Self-Storage Sector
Sought to cap rent increases for self-storage units. Strong opposition led to major amendments, reducing the bill to a rental fee disclosure requirement.
STATUS: SIGNIFICANTLY AMENDED

AB 1248 (Haney; D-San Francisco) – Commercial Lease Notice Mandates
Imposed broad notice rules on leases, including “qualified commercial tenants.” Strong opposition resulted in full removal of commercial property provisions.
STATUS: COMMERCIAL REMOVED

SB 262 (Wahab; D-Hayward) – “Prohousing” Incentives for Rent Control & Eviction Defense
Expanded “prohousing” criteria to include rent control and eviction legal aid, risking grant bonuses for anti-growth policies. CBPA and allies won amendments removing most harmful provisions.
STATUS: SIGNIFICANTLY AMENDED

AB 1157 (Kalra; D-San Jose) – Rent Control
Would have capped rent increases at 2–3%, removed single-family exemptions, and made existing rent control permanent. CBPA and partners stopped the bill this session.
STATUS: TURNED INTO A TWO-YEAR BILL


Protecting commercial real estate for over 50 years

Office: (916) 443-4676

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1121 L Street, Suite 501
Sacramento, CA 95814

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