Protecting CRE: Major Legislative Wins and 2026 Plans

State Legislation

CBPA Strategic Issues Conference brought together industry leaders, policymakers, and BOMA California to tackle the most pressing issues affecting commercial real estate. This recap highlights key legislative wins, ballot measure positions, and upcoming initiatives that could directly impact CRE professionals.

Guest Author: Renato Vazquez, Asset Manager, Kilroy Realty Corporation

Guest Speakers

Todd Gloria – Mayor of San Diego
Antonio Villaraigosa – California Governor Candidate
Summer Stephan – San Diego County District Attorney
Chris Cate – President & CEO, San Diego Regional Chamber of Commerce

Panel Discussions

Retail Theft Reform – One Year of Prop 36
Housing, Mixed-Use, and Logistics
Elections: How Prop. 50 Will Shape the Ballot

BOMA California Legislative Update

2025 Legislative Engagement Overview

Defensive Wins: Blocked or amended 50+ bills, including commercial rent control (AB 380), vacancy taxes (SB 789), and leasing mandates.
Proactive Leadership: Sponsored three bills, including AB 1384, and supported funding for Prop 36 (Retail Theft Initiative).
CEQA Reform: Secured a pause in the building code update cycle, saving members millions and streamlining development timelines.

Sponsored Bill Spotlight – AB 1384 (Nguyen)

Purpose: Ensures timely hearings in commercial unlawful detainer cases, limiting delays caused by demurrers or motions to strike.
Impact: Helps property owners avoid prolonged vacancies and rent loss, enabling quicker turnover and reinvestment. Distinguishes commercial cases from residential ones under AB 2347.
Effective Date: January 1, 2026.

Looking Ahead – 2026 Initiatives

Sponsored Bill Concepts

Lithium Battery Fire Safety (AB 588 Reintroduction): Develops building safety standards for lithium battery-powered devices.
Business Cleanup Relief (AB 1435 Reintroduction): Provides tax credits for cleanup of illegal dumping and encampments.
Plan Review Streamlining: Establishes 30-day timeline for nonresidential plan checks.
Battery Storage Incentive Clearinghouse: Centralizes clean energy incentives and compliance credits.
BCDC Permitting Reform: Expedites permitting for small-scale clean energy projects.

2026 Ballot Measure Positions

Recommended Support

Local Taxpayer Protection Act: Restores Prop 13 and 218 protections, requires 2/3 vote for local special taxes, phases out transfer taxes.
Building an Affordable California Act: CEQA reform introducing firm timelines for environmental review and permitting.

Recommended Opposition

Billionaire Tax Act: Imposes a one-time 5% net-worth tax on billionaires, potentially impacting CRE investment.
Prop 55 Extension: Continues high-income tax surcharges, discouraging investment.
ACA 13: Nullifies Local Taxpayer Protection Act.
Local Transfer Tax Increases: Oppose efforts in San Diego, Benicia, Sacramento.
San Francisco Business Tax: Oppose due to impact on CRE and business climate.