NAIOP members from across California traveled to Sacramento Aug. 13-14 for the California Commercial Real Estate Summit hosted by the California Business Property Association. The two-day summit provided an important opportunity for members to advance the interests of the commercial real estate industry on legislative discussions occurring within the state capitol.

Core legislative priorities for the industry included:

• Zoning Transparency (AB 2904) – California chapters support legislation that extends the notice period from 10 days to 20 days before a public hearing on proposed zoning changes. Notices must be posted on local government websites and include details of the proposed change, its purpose, and information on how property owners can participate in the hearing.
• Adaptive Reuse Investment Incentive (AB 3068) – Chapters support legislation that provides cities and counties with funds equal to the increased property tax revenue from adaptive reuse projects to subsidize affordable housing units. All local governments would be required to establish an adaptive reuse investment program by ordinance or resolution.
• Retail Theft Package – Retail theft is a serious issue causing significant financial losses, safety concerns, and higher operational costs for businesses. Chapters support this package which includes several bills – such as allowing theft cases to be prosecuted by any district attorney with evidence – to address the issue.
• Commercial Lease Mandates (SB 1103) – Chapters oppose legislation that requires a 60-day notice of rent increases and lease terminations, including month-to-month leases. It also requires the translation of negotiated leases into the native language of the potential tenant leading to potential legal complexities. Finally, it prohibits tenant rent increases because of common area maintenance costs, emergency repairs, insurance premium increases and regulatory compliance expenditures.
• Unrealistic Janitorial Regulations (AB 2364 & AB 2374) – Chapters oppose these two bills that will increase operational costs, reduce management flexibility, complicate compliance and discourage investment in commercial real estate. For example, a new state council would be established to regulate the janitorial industry, leading to additional claims and lawsuits. In addition, a new mandate for cleaning quotas would be established that may be unrealistic and impractical based on the building’s current use.

The summit occurred at an important point in the policy-making process as state lawmakers prepare to take final votes on legislation before adjourning sine die (adjourned with no date set for resumption) on Aug. 31.