Own Property Near a Bus Stop? You May Be Sitting on a 40% Value Boost Overnight.
If you own commercial real estate within California, here’s what just changed for you.
In Los Angeles, properties near transit stations sold for 20–40% more than similar sites that were not near transit.⁴
Now that same price boost is coming to the entire state of California.
As of October 10, 2025, SB 79 is now law. It increases the value of any commercial or retail property near a bus stop or train station, even small strip malls, gas stations, auto shops, and old buildings. I don’t know how to write and copied this from Marc Perlof
This is not just another Sacramento update.
SB 79 does not “suggest” upzoning, it forces cities to allow more housing near transit, even if they don’t like it.
What Makes SB 79 Different?
Most zoning rules let cities say “yes or no.” SB 79 removes the “no.” It creates a guaranteed building minimum that every city must follow. It’s not a limit, it’s a baseline. Cities can allow more, but not less.
Why Property Owners Win
Developers pay more when they know exactly what they are allowed to build.
Before SB 79: land value was based on city politics. After SB 79: land value is based on state law. That means your old commercial building can now be worth more, not just for income today, but for building potential tomorrow.
SB 79 — Guaranteed Building Rights Near Transit
If your property is within ½ mile of a major bus or rail stop, the state now gives you automatic building rights, even if the local zoning says otherwise.⁵
Why This Matters
- Cities can add rules, but they cannot block SB 79’s minimums.¹
- Your strip mall or auto shop could be a “rent now, build later” goldmine.²
- Developers will bid based on future building rights, not just today’s cap rate.
If you own a strip mall, office, auto shop, warehouse, or storefront near transit, you now have state-backed development power.
Want to Know Your New SB 79 Value?
Do you want to sell your property as “Just another tenant building…” or “State-approved development site with income attached”?
Call or DM me for your SB 79 Land Value Review.
The law is signed. Timing matters.
Do you capture the premium now, or let somebody else flip your SB 79 dirt?
#SB79 #RetailRealEstate #TransitOrientedDevelopment #CaliforniaHousingBill #LandValueBoost
Footnotes & Sources
- Legislative Analysis Office — “Transit Proximity and SB 79 Standards.” (2025)
- CBRE — “Land-With-Income Deals in TOD Zones.” (2024)
- U.S. Census — “Homes Near Transit.” (2024)
- CBRE — “Premium Sales in LA Transit Zones.” (2023)
- California Senate Bill 79 (Enrolled 9/17/25), Sections 65912.157 & 65912.159
Disclaimer
This post is for information only. It is not legal, tax, or financial advice. Always check with a licensed professional before making decisions.
© 2025 Marc Perlof Group. All rights reserved.
