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Thursday, 18 June 2020

Landlords Spared from Controversial Calif. Bill Allowing Lease Terminations

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Commercial Real Estate Direct Staff Report

Landlords in California can breathe a sigh of relief as a bill designed to protect commercial tenants who have been impacted by the coronavirus pandemic from being evicted today failed to pass the California Senate Judiciary Committee.

The proposed legislation, Senate Bill 939, would have made it illegal for landlords to evict certain commercial tenants - those that had suffered a 20 percent decline in revenue in each of two months, or were forced to reduce their occupancy capacity by at least 15 percent - if they failed to pay rent during the state of emergency that was declared as a result of the coronavirus pandemic. It also would have allowed affected tenants to defer paying rent for up to 12 months and wouldn't have allowed late fees to be charged.

In addition, it would have allowed tenants operating restaurants, bars or other entertainment venues to terminate their leases. The bill only would have applied to California registered businesses with 500 employees or less.

The bill, many argued, would have upended established contract law as it relates to leases on commercial properties.

It had been introduced by state Senators...


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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • States: California
  • Sector: Retail
  • Subject: Leases (LSE), Legal Issues (LEGL)
  • Private: Yes
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