Governor Newsom Signs Budget: What It Could Mean for the CRE Industry
Governor Gavin Newsom has signed the 2025 state budget that promises to invest in housing, education, health care, and public safety.
This budget includes key changes that could impact how commercial real estate professionals plan, operate, and invest.
What You Need to Know
The budget includes:
Big investments to speed up housing construction, with faster infrastructure projects likely coming in follow-up bills.
Funding to improve CEQA rules (AB/SB 131) and make it easier to approve housing and development projects.
Support for key industries like film and TV, which play a big role in Los Angeles commercial real estate.
More funding for public safety and firefighting, which could mean faster response times and less risk for properties in wildfire areas.
Continued support for affordable services without raising taxes on families, small businesses, or workers.
How It Impacts You
Faster housing approvals are expected with AB/SB 131, making the CEQA process simpler—especially for infill and rezoning projects. Property owners may find new chances to update or change their buildings in these areas.
Improved Development Certainty: Clearer CEQA rules will reduce delays and legal risks, giving developers more certainty in their projects.
Continued Investment in Urban Infrastructure: Fast-tracked infrastructure projects will improve access, utilities, and property values, so CRE professionals should be ready.
Concerns About New Transportation Fees: Some bills, like AB/SB 130, could add costly fees for developers to offset traffic impacts. This might raise the price of new housing, especially outside transit areas.
Stay Connected
Follow BOMA on the Frontline for updates, as this budget passage is hinging on AB 131/SB 131 passing.
