California Commercial Leasing Lawyer | Leeran S. Barzilai, APLC
Negotiate, draft, or litigate commercial leases anywhere in California. Trust California commercial leasing lawyer Leeran S. Barzilai for landlord and tenant representation. Free consultation statewide.
A commercial lease is one of the most significant contracts your business will ever sign. Whether you are a landlord leasing office space in downtown San Francisco, a retailer opening a new store in Los Angeles, or a restaurant operator expanding in San Diego, the terms of your lease will impact your bottom line for years to come. At Leeran S. Barzilai, A Prof. Law Corp. , we help clients throughout California navigate the complexities of commercial leasing with strategic insight and practical guidance.
The commercial leasing landscape in California has changed dramatically. With the enactment of SB-1103 (the Commercial Tenant Protection Act) effective January 1, 2025, landlords and tenants face new statutory requirements for rent increases, operating cost disclosures, lease terminations, and language translations . An experienced California commercial leasing lawyer ensures your leases comply with these new laws while protecting your interests.
Why You Need a California Commercial Leasing Lawyer
Commercial leases involve complex legal, financial, and operational considerations. Understanding these nuances is essential for avoiding disputes and maximizing value.
SB-1103 Transformed the Legal Landscape: The Commercial Tenant Protection Act created significant new protections for “Qualified Commercial Tenants” (QCTs)—microenterprises, restaurants with fewer than 10 employees, and nonprofits with fewer than 20 employees . These protections include longer notice periods for rent increases (90 days for increases exceeding 10%), extended lease termination notice (60 days), strict requirements for operating cost passthroughs, and mandatory lease translations for negotiations conducted in Spanish, Chinese, Tagalog, Vietnamese, or Korean .
Landlords Face New Compliance Burdens: Landlords must now provide detailed supporting documentation for operating costs, including itemized quotes, contracts, and invoices, along with a signed attestation that the documentation is true and correct . Operating costs must be incurred within the previous 18 months or reasonably expected within the next 12 months . Failure to comply can result in actual damages, treble damages for willful conduct, punitive damages, and attorneys’ fees .
Tenants Have New Audit Rights: Qualified commercial tenants now have statutory audit rights for operating costs, regardless of whether the lease includes such provisions . Tenants may request supporting documentation at any time, and landlords must respond within 30 days .
Lease Structure Impacts Liability: The choice between gross leases, triple net leases, modified gross leases, and percentage rent leases dramatically affects your financial exposure. Skilled counsel helps you select and negotiate the structure that aligns with your business goals.
Where We Serve: All Major California Commercial Markets
We represent landlords, tenants, and investors throughout the Golden State. Our firm has experience in every major commercial real estate market. Consequently, we understand local market conditions, property types, and the unique dynamics of California’s diverse regions.
Los Angeles County: As California’s largest commercial real estate market, LA offers diverse opportunities across retail, office, industrial, and creative space. According to Raines Feldman Littrell LLP , experienced leasing counsel represents both landlords and tenants in negotiating retail, industrial, and office leases nationwide . We serve clients throughout LA County, from downtown to the Westside to the San Fernando Valley.
San Diego County: Our home base at 4501 Mission Bay Dr, Ste 3C puts us at the center of San Diego’s vibrant commercial real estate market. According to Procopio , San Diego commercial leasing counsel represents buyers, sellers, landlords, tenants, operators, and managers of shopping centers, office buildings, industrial buildings, medical buildings, and other commercial properties . We serve clients throughout San Diego County.
Orange County: We represent landlords and tenants in Irvine, Newport Beach, Santa Ana, and Anaheim. Orange County’s strong retail, office, and medical office markets require specialized knowledge.
Riverside and San Bernardino: The Inland Empire’s massive logistics and industrial market generates significant leasing activity. We serve clients in Riverside, San Bernardino, Ontario, and Rancho Cucamonga.
Ventura and Santa Barbara: From Oxnard to Santa Barbara, we handle commercial leasing matters along the Central Coast, including retail, office, and industrial properties.
Sacramento County: California’s capital city has a diverse commercial market spanning government, healthcare, and professional services. We represent clients throughout Sacramento, Elk Grove, and Roseville.
Fresno County: The heart of the Central Valley has unique retail, industrial, and agricultural commercial properties. We serve clients in Fresno, Clovis, and Madera.
Kern County: Bakersfield’s energy, agriculture, and logistics sectors drive commercial leasing activity. We help clients throughout Kern County.
San Joaquin Valley: Stockton, Modesto, Tracy, and Lodi have growing industrial and retail markets. We represent clients throughout the northern San Joaquin Valley.
Tulare County: We serve clients in Visalia, Tulare, and Hanford, where agricultural processing and retail drive commercial leasing.
San Francisco: The Bay Area’s office and retail markets are among the most dynamic in the nation. According to Miller Starr Regalia , experienced counsel represents national retailers, office tenants, and landlords in complex lease negotiations throughout California . We represent clients at the San Francisco Superior Court and in complex transactions.
San Jose and Silicon Valley: Santa Clara County’s technology-driven office market requires sophisticated counsel. We help technology companies, startups, and landlords navigate the unique dynamics of Silicon Valley leasing.
Oakland and East Bay: Alameda County has vibrant retail, office, and industrial markets. We represent clients throughout the East Bay.
Santa Rosa and North Bay: Sonoma, Napa, and Marin counties have thriving wine country retail and hospitality markets. We represent landlords and tenants throughout the North Bay.
Far Northern California: Redding and Shasta County commercial property owners need accessible counsel. We travel to serve clients throughout the northernmost regions.
Santa Barbara: The American Riviera has active retail, office, and hospitality markets. We represent clients in Santa Barbara, Goleta, and Carpinteria.
Central Coast: Monterey, Santa Cruz, Salinas, and Watsonville have growing commercial markets. We understand the unique dynamics of coastal commercial real estate.
North Coast: Eureka and Humboldt County commercial property owners need accessible representation. We travel to serve clients throughout the region.</details>
Comprehensive Commercial Leasing Subpages
We provide full-service commercial leasing counsel across all property types. Each subpage below provides detailed information tailored to your situation.
Landlord Representation
California Commercial Landlord Lawyer: Landlords need leases that protect property value, ensure steady income, and minimize risk. This subpage covers lease drafting, negotiation strategies, tenant improvements, operating expense reconciliations, and default remedies. According to Schreiber Law Firm , experienced counsel identifies issues that could affect your bottom line later—such as environmental concerns, lien history, access disputes, or title defects .
Tenant Representation
California Commercial Tenant Lawyer: Tenants need leases that support business operations, control costs, and provide flexibility. This subpage covers lease negotiation, renewal options, expansion rights, assignment and subletting, and termination provisions. With the new SB-1103 protections , qualified tenants have powerful new rights requiring strategic advocacy .
Retail Leasing
California Retail Lease Lawyer: Retail leases involve unique considerations—percentage rent, exclusive use provisions, co-tenancy requirements, and operating covenants. This subpage covers negotiating retail leases for shopping centers, storefronts, and malls. According to Miller Starr Regalia , experienced counsel negotiates complex retail leases on behalf of national retailers and landlords .
Office Leasing
California Office Lease Lawyer: Office leases require attention to tenant improvements, expansion options, parking, and building services. This subpage covers office leases for professional firms, technology companies, and corporate tenants.
Industrial Leasing
California Industrial Lease Lawyer: Industrial properties—warehouses, manufacturing facilities, and distribution centers—have specialized requirements. This subpage covers loading docks, clear heights, hazardous materials, and operational covenants.
Restaurant and Hospitality Leasing
California Restaurant Lease Lawyer: Restaurant leases involve unique issues—kitchen exhaust, grease traps, liquor license compliance, and outdoor dining. This subpage covers negotiating restaurant and hospitality leases.
Medical Office Leasing
California Medical Office Lease Lawyer: Medical office leases require attention to specialized buildouts, regulatory compliance, and patient access. This subpage covers leasing for medical, dental, and healthcare tenants.
Understanding SB-1103: The Commercial Tenant Protection Act
California’s commercial leasing landscape changed fundamentally on January 1, 2025. Understanding these new requirements is essential for both landlords and tenants.
Who is a “Qualified Commercial Tenant” (QCT)?
Under SB-1103 , a QCT is defined as :
- Microenterprise: A sole proprietorship, partnership, LLC, or corporation with five or fewer employees (including the owner) that generally lacks sufficient access to loans, equity, or other financial capital
- Restaurant: A restaurant with fewer than 10 employees
- Nonprofit: A 501(c)(3) nonprofit organization with fewer than 20 employees
Tenants must self-attest to QCT status before or at lease execution and annually thereafter .
Notice Requirements for Rent Increases
For QCTs with month-to-month or periodic tenancies, landlords must provide :
- 90 days’ written notice for rent increases exceeding 10% of the rental amount charged during the prior 12 months
- 30 days’ written notice for rent increases of 10% or less
- 30 days’ written notice for increases due to income recertification
Lease Termination Notice Periods
Landlords must provide QCTs with :
- 60 days’ written notice to terminate a periodic tenancy if the tenant has occupied for one year or more
- 30 days’ written notice if the tenant has occupied for less than one year
QCTs may terminate with notice equal to the periodic lease term (e.g., 30 days for month-to-month) .
Operating Cost Passthrough Requirements
The most significant provisions of SB-1103 regulate how landlords charge QCTs for building operating costs :
- Costs must be allocated proportionately per tenant, by square footage, or by another documented method
- Costs must have been incurred within the previous 18 months or reasonably expected within the next 12 months
- Landlords must provide supporting documentation upon request within 30 days
- Supporting documentation includes itemized quotes, contracts, receipts, or invoices with a signed attestation of truth and correctness
Landlords cannot charge any operating costs until supporting documentation is provided. These requirements are non-waivable by QCTs .
Translation Requirements
If lease negotiations are conducted in Spanish, Chinese, Tagalog, Vietnamese, or Korean, landlords must provide a written translation of the lease in that language before execution . Failure to comply gives the aggrieved party the right to rescind the lease .
Penalties for Noncompliance
Landlords who violate SB-1103 face serious consequences :
- Actual damages
- Reasonable attorneys’ fees and costs
- Treble damages for willful or oppressive conduct
- Punitive damages for fraud or malice
- Injunctive relief
- Affirmative defense for tenants in wrongful detainer actions
Commercial Lease Disputes and Litigation
When lease disputes arise, experienced representation is essential. According to Shartsis Friese LLP , commercial lease disputes encompass just about every commercial lease issue that has arisen in California in recent years . We handle:
- Breach of lease claims
- Unlawful detainer actions
- Eviction proceedings
- Rent abatement disputes
- Tenant improvement disagreements
- Operating expense reconciliation disputes
- Option exercise controversies
- Assignment and subletting disputes
Our litigators are experienced in all aspects of alternative dispute resolution, including mediation and arbitration, which many commercial leases require .
The Commercial Leasing Process
Understanding the leasing lifecycle helps you prepare and make informed decisions.
Letter of Intent (LOI): The LOI outlines key business terms—rent, term, tenant improvements, options, and exclusivity. While typically non-binding, the LOI sets expectations for the definitive lease.
Due Diligence: Tenants should investigate zoning, parking, accessibility, and building systems. Landlords should verify tenant financial capacity and business operations.
Lease Negotiation: The definitive lease addresses every aspect of the tenancy—use restrictions, maintenance obligations, insurance requirements, assignment rights, default remedies, and dispute resolution. According to M&A practitioners, careful negotiation allocates risk appropriately .
Execution and Delivery: After signing, tenants should obtain estoppel certificates, subordination agreements, and any required consents.
Ongoing Compliance: Throughout the lease term, both parties must comply with lease provisions, including operating expense reconciliations, maintenance obligations, and notice requirements.
Frequently Asked Questions
How much does a California commercial leasing lawyer cost? Our fees vary depending on the scope of services required. We offer transparent fee arrangements, including flat-fee options for lease reviews and hourly rates for complex negotiations and litigation. Contact us to discuss your specific needs.
What is the difference between a gross lease and a triple net lease? In a gross lease, the landlord pays most operating expenses (taxes, insurance, maintenance). Rent is typically higher but predictable. In a triple net (NNN) lease, the tenant pays base rent plus a proportionate share of property taxes, insurance, and common area maintenance. Rent is lower, but costs vary. Modified gross leases fall between these extremes.
How does SB-1103 affect my commercial lease? If you are a qualified commercial tenant (microenterprise, small restaurant, or small nonprofit), you have significant new rights regarding rent increase notices, termination periods, operating cost documentation, and lease translations . Landlords must comply with strict documentation and notice requirements or face penalties.
Do I need to translate my commercial lease? Under SB-1103 , if lease negotiations are conducted in Spanish, Chinese, Tagalog, Vietnamese, or Korean, you must provide a written translation before execution . Failure to do so gives the other party the right to rescind.
What are common area maintenance (CAM) charges? CAM charges are the tenant’s share of operating costs for common areas—parking lots, lobbies, hallways, and landscaping. Under SB-1103, QCTs have new rights to detailed documentation of these costs .
Can I assign or sublet my commercial lease? Most commercial leases restrict assignment and subletting without landlord consent. However, California law prohibits unreasonable withholding of consent in many circumstances. We help tenants negotiate reasonable assignment provisions.
What happens if my landlord violates SB-1103? Tenants may recover actual damages, attorneys’ fees, and costs. For willful violations, tenants may recover treble damages and punitive damages . Violations may also serve as affirmative defenses in eviction proceedings .
Contact Your California Commercial Leasing Lawyer Today
Your commercial lease is too important to leave to chance. Whether you are a landlord seeking to protect your property, a tenant negotiating new space, or a party to a lease dispute, experienced counsel makes all the difference.
At Leeran S. Barzilai, A Prof. Law Corp. , we represent landlords, tenants, and investors throughout California in all commercial leasing matters. We offer free consultations. Our team brings transactional experience and litigation insight to every engagement.
Call 619-436-7544 or email info@lbatlaw.com to schedule your free consultation. Visit https://lbatlaw.com/ for more information. Our office is conveniently located in San Diego. We represent clients statewide. We are ready to protect your interests, no matter where you are.
Local Office and Court Information
| Region | Major Cities | Key Property Types |
|---|---|---|
| Southern California | Los Angeles, San Diego, Orange County, Inland Empire | Retail, Office, Industrial, Creative Space, Medical Office |
| Central California | Sacramento, Fresno, Bakersfield, Stockton | Retail, Industrial, Agricultural, Office |
| Northern California | San Francisco, San Jose, Oakland, Santa Rosa | Office, Tech, Retail, Industrial, Wine Country |
| Coastal Regions | Santa |