The 2025 legislative session has proven to be one of the most challenging in recent memory for the commercial real estate industry, with numerous bills taking direct aim at our sector.

Last Friday marked the deadline for Senate and Assembly policy committees to hear and report non-fiscal bills introduced in their respective chambers. While our advocacy efforts continue against several harmful proposals, we’re pleased to report key early victories—several problematic bills we have opposed have been significantly amended or blocked.

SB 789 (Menjivar; D-Van Nuys) - Commercial Vacancy Tax

SB 789 initially proposed a statewide vacancy tax on commercial real estate, imposing a $5 per square foot tax on properties deemed "vacant." After significant pushback, the bill has been substantially amended to remove the proposed vacancy tax and now requires owners of non-residential property to annually report vacancy details. STATUS: SIGNIFICANTLY AMENDED - REMAIN OPPOSED. LOCATION: SENATE APPROPRIATIONS

SB 709 (Menjivar; D-Van Nuys) – Rent Regulation in Self-Storage Sector 

This bill would have imposed price controls on the self-storage industry. Initially, the bill sought to cap rent increases at the lower of 5% plus Consumer Price Index (CPI) or 10% annually. After significant pushback, the bill has been substantially amended to remove the rent control component and now requires self-storage rental agreements to clearly disclose key terms, including whether rent may increase and the maximum amount that could be charged within the first 12 months of the agreement. STATUS: SIGNIFICANTLY AMENDED - REMAIN OPPOSED. LOCATION: SENATE APPROPRIATIONS.

AB 1157 (Kalra; D-San Jose) – Rent Control 

This bill would have capped annual rent increases at a maximum of 2–3% or the CPI, whichever is lower. It also would have eliminated the exemption for single-family homes and removed the sunset provision from the existing rent control law, AB 1482, making those regulations permanent. STATUS: TURNED INTO A TWO-YEAR BILL, BLOCKED FOR THE REMAINDER OF THIS SESSION.

AB 1243 (Addis; D-San Luis Obispo) / SB 684 (Menjivar; D-Van Nuys) – Polluters Pay Climate Superfund Acts

These bills would have unfairly targeted businesses by creating a costly, litigation-prone climate superfund program. Under the vague premise of “climate accountability,” they would impose sweeping financial liabilities on companies for decades of past emissions, regardless of current practices. STATUS: KILLED

SB 667 (Archuleta; D-Norwalk) – Railroads: Safety Mandates and Wayside Detectors

This bill would have capped freight trains at 7,500 feet and required frequent safety inspections using wayside detectors. The bill presented legal issues, high costs, and delays for passenger rail - raising consumer prices and worsening train reliability. STATUS: KILLED.

SB 222 (Wiener; D-San Francisco) – Climate Disasters: Civil Actions

This bill would have authorized individuals to file civil lawsuits for damages of $10,000 or more against parties deemed responsible for a climate disaster, imposing strict, joint, and several liability for recovery of damages, restitution, and costs. STATUS: KILLED.

While we celebrate these victories, many critical issues remain before the September 12th deadline to pass bills. Thank you for your ongoing support of CBPA and our efforts to oppose harmful policies and promote a pro-growth environment for commercial real estate.