SB 79 Could Add Millions to Your Retail Property. Even If You Never Build

Marc Perlof • October 6, 2025


Hey Commercial Real Estate Rockstars!


In Los Angeles, upzoned sites near transit sold for 20–40% more than similar properties that weren’t near transit.⁴ That price jump is now coming statewide.


SB 79 is set to increase the value of any retail or commercial property you own in California that is close to a bus stop or rail station, including tiny strip malls, gas stations, auto shops, and more. This isn't just another Sacramento news story.  A statewide law known as SB 79 requires localities to permit more housing close to transit, even if they don't like it.


What Makes SB 79 Different?

The majority of zoning laws allow communities to decide yes or no. SB 79 takes away their ability to refuse. It establishes the minimal building rights that any city must permit. Consider it this way: It's not a ceiling; it's a floor. More housing may be permitted by cities, but not below the SB 79 minimum.


Why Commercial Property Owners Win

When developers are aware of what they are permitted to construct, they pay more.
Prior to SB 79, city politics determined the value of land. Following SB 79, state law determines the value of land. Don't speculate.

Commercial buildings now appear even more appealing because they can serve as both housing and cash flow in the future.


Key Benefits for Property Owners

  • SB 79 gives automatic development rights to properties within ½ mile of transit.
  • Cities can add more rules — but they cannot block SB 79’s minimum standards.¹
  • Many retail sites become perfect for “buy now, collect rent, build later” deals.²
  • Developers will bid based on future building potential — not just cap rate.



If you own a strip mall, pad site, auto shop, office, or industrial building near transit, you now have guaranteed development rights backed by state law.


Want to know your SB 79 land value, based on buildable square feet, not just rent roll?

Want to sell your property as “SB 79 land with income” instead of “tenant-occupied building”?

Call or DM me to schedule your SB 79 land value review today.


Governor Newsom is expected to sign it any day, timing matters.


Do you capture the premium now, or let someone else sell your SB 79 dirt for you?


#SB79 #RetailRealEstate #TransitOrientedDevelopment #CaliforniaHousingBill #LandValueBoost

Footnotes & Sources


  1. Legislative Analysis Office — “Transit Proximity and SB 79 Standards.” (2025)
  2. CBRE — “Land-With-Income Deals in TOD Zones.” (2024)
  3. U.S. Census — “Homes Near Transit.” (2024)
  4. CBRE — “Premium Sales in LA Transit Zones.” (2023)


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.

CPI Freeze: How the Shutdown Could Stall Your Retail Rent Increases Overnight

By Marc Perlof • November 17, 2025
By Marc Perlof | MarcRetailGuy November 17, 2025 If you own retail real estate, here’s what just changed for you. A federal government shutdown does more than close offices. It also stops the Bureau of Labor Statistics (BLS) from releasing new CPI numbers. When CPI data pauses, retail landlords who use CPI rent increase clauses lose the main tool they need to calculate yearly rent changes¹. Your rent bumps, cash flow plans, and long-term property value all depend on this number. If the data stops, your rent adjustment stops too. Many retail leases use CPI to keep rent in line with commercial real estate inflation. But during a shutdown, no new CPI is published². That means you cannot figure out the exact increase for the year. Tenants may ask for delays. Owners may wait to invoice. Even a short shutdown can slow down your whole rent escalation schedule. What retail property owners should do now: • Read your lease. Many say to use the “most recently published CPI” when new data is not out yet³. • Keep clear records. Save the CPI number used during your last adjustment⁴. • Use the latest CPI available until new numbers return. Then, if allowed, issue a catch-up increase. • Watch federal updates so you can recalculate as soon as CPI reporting restarts. The impact is real. The 2019 shutdown delayed more than 40 major economic reports⁵. CPI covers over 90 percent of the U.S. population, which means almost all CPI-linked retail leases rely on it⁶. If your rent increases use CPI, now is the time to review your lease and prepare for any catch-up adjustments. Call or DM me if you want help breaking this down. How would a delayed rent increase change your NOI over the next 12 months? #CPI #RetailRealEstate #LeaseEscalation #CREOwners #InvestmentStrategy

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