What Santa Monica’s New Vacant Property Law Means for CRE Owners
Santa Monica City Council has adopted an ordinance that expands how vacant properties are regulated and monitored across the city.
Importantly for BOMA/GLA members, these requirements apply to commercial properties—including office, retail, industrial, and mixed-use buildings—that are fully or substantially vacant.
What You Need to Know
The Santa Monica City Council approved Ordinance No. 2836 (CCS), amending Chapter 13.04 of the Municipal Code to establish a formal vacant property registration and monitoring program.
This ordinance explicitly applies to vacant commercial properties, not just residential buildings.
A “vacant property” includes any residential, commercial, industrial, or mixed-use parcel that is unoccupied, abandoned, or substantially vacant (fewer than 35 percent occupied) for more than 90 days, unless active, permitted construction is underway.
Key provisions include:
- Mandatory registration: Owners must register vacant properties by January 1, 2026, or within 30 days after a property becomes vacant, whichever is later. Registration and fees are required for each parcel.
- Vacant property mitigation plan: Registration must include a plan detailing how the property will be maintained and secured, along with current owner contact information, square footage, prior legal use, insurance status, and anticipated timeline for re-occupancy.
- Tiered classification system: Vacant properties will be classified from Tier 1 to Tier 4 based on condition, code compliance, owner responsiveness, and public safety risk. Higher tiers face increased oversight and higher monitoring fees.
- Quarterly monitoring fees: In addition to registration fees, owners must pay quarterly vacant property monitoring fees, with amounts set by City Council resolution. Tier 1 properties are generally exempt unless they were previously classified in a higher tier.
- Ongoing inspections and reporting: Owners or their agents must conduct weekly inspections and submit written reports with time-stamped photos documenting property conditions and any corrective actions. The City may require more frequent inspections if conditions warrant.
- Expanded security and maintenance standards: Requirements may include trespass arrest authorizations on file with the Santa Monica Police Department, specific signage, fencing, landscaping and irrigation, lighting, cameras, and in some cases onsite or patrol security.
- Enforcement and penalties: Failure to comply or pay required fees may result in fines, liens, or special assessments placed on the property.
How It Impacts You
For commercial property managers, owners, and service providers, this ordinance significantly raises the bar for managing vacancy in Santa Monica:
Vacancy now triggers immediate compliance obligations. Office, retail, and industrial buildings that are fully vacant—or mostly vacant—can quickly fall under registration, inspection, and fee requirements.
Holding costs for vacant space will increase. For example, registration fees, quarterly monitoring fees, enhanced security measures, landscaping standards, and inspection reporting all add to the cost of maintaining vacant commercial properties.
Property management responsibilities expand, with managers needing systems in place for weekly inspections, documentation, City reporting, and rapid response to code enforcement issues to avoid higher-tier classifications.
Increased demand for vendors and service providers for security, landscaping, fencing, pest control, and monitoring services will play a larger role in helping owners remain compliant.
Noncompliance carries financial and operational risk. For example, tier escalation, higher fees, and the potential for liens or special assessments make proactive compliance critical—especially for portfolios with multiple or partially vacant buildings.
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