NAIOP, a premier commercial real estate development and owners association, announced its opposition to California Senate Bill 939. SB 939 is pending before the state legislature and threatens to replace a loss in business revenue problem with a statewide commercial mortgage crisis. If passed, SB 939 would, on a statewide basis, give commercial tenants a unilateral termination right, with no future obligations, including by their third-party guarantors, upending previously reliable contractual obligations. In doing this, it sets a dangerous precedent, undermining the validity of existing, mutually negotiated lease agreements in the state.
NAIOP SFBA’s weekly ZOOM-IN webinar on May 21st focused on the state of Bay Area multifamily market and featured some of the region’s most prominent developers and investors. Moderated by Jason Parr, Managing Director, Multifamily Advisory Group, Cushman & Wakefield, the program included a market overview by David Bitner, Vice President America’s, Head of Capital Markets Research, Cushman & Wakefield. Panelists included: Pat Calihan, Senior Vice President of Investments, Prometheus; Mike Ruiz, Vice President, Investments, Northern California and Pacific Northwest, Carmel Partners;and Zach Felson, Vice President, Investments, Prado Group.
Just a few days ago, SB 939 passed the Senate Judiciary Committee on a minimum number of votes.
We remain opposed to the bill as the amendments taken so far do not sufficiently address our concerns. We anticipate a battle once the Legislature continues its discussions and ultimately moves toward a vote before June 26th.
NAIOP members should be aware of recently proposed California legislation, SB 939 introduced by Senator Scott Wiener (SF), and its potential for having a significant impact on existing commercial leases. If passed, SB 939 would place small property owners into foreclosure by forcing them to float rent for all tenants and gives restaurants the right to walk away from a lease without squaring up for owed rent or paying for property improvements
NAIOP SFBA’s hosted its sixth weekly ZOOM-IN webinar on Thursday 5/14: A California Legislative Update featuring Rex Hime, President and CEO, California Business Properties Association (CBPA). The Chapter actively participates in the work of CBPA as NAIOP’s designated legislative advocate in California. Hime provided detailed updates and analysis of CBPA’s efforts to defeat the 2020 split-roll tax initiative as well as two COVID-19 bills currently before the California Legislature.
TAKE ACTION NOW!!!
Proposed legislation negates all current commercial leases to the benefit of one business over another.
SB 939 (Wiener) – Would Have A Significant Impact on Commercial Leases – Set terrible precedent!
* LEGISLATION WOULD USE CURRENT COVID-19 EMERGENCY TO UPEND ALL YOUR LEASES
* REQUIRES ALL LESSORS IN CALIFORNIA TO DEFER LESSEE RENT OBLIGATIONS FOR MORE THAN A YEAR
* ALLOWS A CERTAIN BUSINESS TYPE TO NEGATE LEASE AND WALK WITH NO RESPONSIBILITY FOR TENANT IMPROVEMENT
This Thursday would have been our big CREATE Gala, but our large gathering is not possible during current Shelter-In-Place restrictions. However, the show must go on and our work purposefully continues, despite COVID. And COVID-19 is not all that we are tending to. We have not paused on other critical work, and we will not rest. CREATE continues to make good progress tackling our talent drought! For six years, we've relied on the Gala to highlight the achievements of our workforce development initiative, showcase our student graduates, honor an Industry Partner for their support (this year, Tishman-Speyer), and importantly, to raise funds for the Commercial Real Estate Alliance for Tomorrow's Employees (CREATE).
Wayne Strom, PhD, the founder and visionary behind the Young Professionals Group Program (YPG) has recently passed away at the age of 85. Strom was instrumental in bringing the YPG program to the Bay Area from southern California, and he personally led the program here from 2013-2016.
Provided by NAIOP SFBA Local Lobbyist: New Deal Advisers
There are a few current relief measures for both property owners and renters in the Bay Area. These pair with state and federal measures to reduce evictions and foreclosures on residential and commercial property. Here below is a current list of initiatives at the local, state and federal levels to alleviate economic strain for property owners and renters.
PARTNERS IN SAFELY RE-OPENING CALIFORNIA RETAIL AND SHOPPING VENUES
BUSINESS GROUPS ASKING FOR DELAY ON SCAG PLAN
PACIFIC LEGAL FOUNDATION: FAQ RE GOVERNMENT’S EMERGENCY ORDERS
WORKERS COMP AND COVID-19
BUILDING CODE SUCCESSES! ELEVATORS & BIRDS
FLAMMABLE REFRIGERANT BILL SHELVED FOR THE YEAR
AMENDED BILL WOULD REQUIRE 25% STATEWIDE RENT REDUCTION
COVID-19 RESOURCES PAGE
CBPA 2020 CALENDAR