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.

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