Bill Would Let Commercial Tenants Get Out of Leases in Some Conditions

San Francisco Business Times (May 20, 2020) A proposed law scheduled for a Friday hearing at the Senate Judiciary Committee would allow commercial tenants to back out of their leases if attempts to negotiate with their landlords in good faith prove unsuccessful. Senate Bill 939, introduced by state Sens. Scott Wiener, D-San Francisco, and Lena Gonzalez, D-Los Angeles, is designed to help businesses and nonprofits struggling financially as a result of government orders that have required them to shutter since mid-March because of Covid-19. Tony Natsis, chair of Allen Matkins Global Real Estate Group, said the bill is overreaching and should be narrowed to focus on restaurants. “You’re at the razor’s edge of your margin even when you’re busy, so they have a problem,” said Natsis about restaurants. “That's completely acknowledged. And they are the ones I believe that the legislature is trying to protect. I think that in its current state the bill is so controversial that it has slowed down its ability to pass,” said Natsis. “If we drop a nuclear warhead, we will kill every landlord in town.” Read More (subscription required)