Commercial Rent Control in AB 380: Undermining CRE’s Recovery Efforts

The wildfires earlier this year were absolutely devastating, but our CRE industry rallied in many recovery efforts.   

For example, CRE professionals contributing to BOMA/GLA’s Second Wave Support: Fire Recovery Donation Drive or participating in LA County Department of Economic Opportunity (DEO)’s Space Share platform.    

However, the state legislature is now advancing Assembly Bill 380—a measure that threatens to undermine the very recovery efforts we’ve worked so hard to achieve. 

The bill is currently set for a vote in the Assembly in the week of June 2nd and would effectively legalize commercial rent control in any state of emergency if it should pass.

What You Need to Know 

Assembly Bill 380 proposes to modify Penal Code Section 396 by imposing strict new limits on rent increases during declared emergencies.  

While originally intended to protect consumers from price gouging, AB 380 goes much further and presents a danger for the CRE industry. 

For example, AB 380 would override negotiated commercial agreements, disrupting standing leasing practices. 

Rent increases would be capped at 10% for properties rented or listed within a year before the emergency declaration—even for commercial leases. 

For unrented properties at the time of the emergency, rent cannot exceed 160% of HUD’s fair market rate. 

Property owners wouldn’t be able to remove tenants even if they aren’t paying rent—essentially forcing rent-free tenancy during active emergencies. 

How It Impacts You 

For commercial real estate professionals, AB 380 poses serious operational and financial risks. 

• Rent caps would keep owners from covering higher insurance, taxes, or emergency repairs. 

• State agencies would have to cover tenant losses, risking precious taxpayer dollar funding for various public services. 

• This bill also authorizes local governments to uphold these restrictions indefinitely, slowing down investment and recovery. 

Stay Connected 

Stay tuned to BOMA on the Frontline for timely updates on AB 380 and other legislation that could impact the CRE industry. 

BOMA/GLA is actively engaging lawmakers to oppose AB 380 alongside the California Business Properties Association (CBPA). 

Contact your Assemblymember before the Assembly vote this week of June 2nd with messaging found on CBPA’s website here.