California’s Commercial Tenant Protection Act (SB-1103) took effect on January 1, 2025. Conceived as a transparency and displacement prevention measure for small businesses, the new law creates tenant protections for small enterprises and nonprofits leasing commercial property that resemble those more typically found in residential leases. A tenant who self-attests that it is a “Qualified Commercial Tenant” (“QCT”) within the meaning of SB-1103 may receive longer notice periods for rent increases and lease terminations, as well as new rights and remedies with respect to passthroughs of operational costs. Under certain circumstances, the law also requires landlords to provide translations for QCTs who negotiate leases in any of California’s five most common non-English languages.
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