Culver City Development Permit Fees — What CRE Should Know

Culver City has implemented an updated Comprehensive Fee Schedule that increased certain development-related fees charged during the permitting process for construction and renovation projects.

Fees are paid by property owners and they can influence leasing timelines, tenant build-outs, and reinvestment activity — all areas commercial real estate professionals manage every day.

What You Need to Know

In January 2025, the Culver City City Council approved an updated Comprehensive Fee Schedule, which includes fees tied to development permits.

The fees apply when a project increases demand on public infrastructure and services such as sidewalks, parks, and public facilities.

An impact fee is not a tax on operating a building. It is a one-time charge triggered by permits.

Owners may encounter these fees when they:

• add square footage
• convert uses (for example, office to medical or restaurant)
• redevelop a site
• complete major renovations
• build mixed-use projects
• and sometimes undertake large tenant improvements

The change primarily affects upfront project costs. The recalculated schedule means some projects now face higher expenses early in the permitting process — before construction begins and before a tenant opens.

Because fees are calculated during permitting — often months after a lease is signed — many commercial projects are only now encountering these higher costs even though the City adopted the policy in 2025.

How It Impacts You

The operational ripple effects appear in property management and service operations.

Slower tenant openings

When project costs increase during permitting, owners may revisit budgets, adjust scopes of work, or renegotiate deal terms.

Property managers may see tenants take longer to open even after a lease is executed, particularly for restaurants, medical users, or heavily improved spaces.

Fewer improvement projects

Many commercial buildings rely on periodic upgrades to stay competitive — lobby improvements, amenity additions, and converting vacant suites to new uses.

Higher permit-related costs can make some marginal projects harder to justify, which can lead to:

• longer vacancies
• postponed renovations
• delayed leasing activity
• Changes to deal structure

Costs can be offset through rent changes, tighter tenant improvement allowances, or greater tenant participation in build-out costs.

Managers may notice negotiations becoming more detailed and timelines extending before a deal closes.

Effects on vendors and building services

Tenant improvements often trigger new service contracts and operational ramp-ups.

When build-outs slow or are delayed, service providers may see projects pushed back, staggered move-ins, and less predictable scheduling.

Stay Connected

Commercial real estate — particularly office and retail — can depend on renovation, repositioning, and adaptive reuse to attract tenants.

Policies that increase permit-related costs can influence how quickly spaces are improved and occupied, even though they are aimed at funding public infrastructure.

For property managers and service providers, the practical takeaway is straightforward: project economics affect operational timelines.

When improvements become more expensive upfront, leasing, occupancy, and building activity can move more slowly across the local market.

Stay connected to BOMA on the Frontline for more news impacting members.