Commercial Tenant Protections in California
Unlike residential leases, commercial leases in California are largely unregulated — the lease itself is the primary protection. However, California law requires: (1) Good faith and fair dealing in all contract performance (landlord cannot act arbitrarily), (2) Habitability of commercial spaces (structures must be safe and suitable for their intended use), (3) Non-discrimination in leasing (cannot discriminate based on protected classes). Additionally, some California cities have enacted Commercial Tenant Protection Ordinances (CTPO) limiting rent increases, requiring notice for non-renewal, and protecting against wrongful eviction. San Francisco, Los Angeles, Santa Monica, and Oakland have CTPs — check your city.
CAM and Operating Expense Regulation
California generally does not cap CAM charges, but requires transparency. Landlords must provide: (1) Detailed CAM statements showing what's included, (2) Itemization of charges, (3) Right to audit CAM records. Many commercial leases exclude certain items from CAM (capital improvements, management overhead), which is common. Negotiate CAM terms carefully — uncapped CAM in high-inflation periods can escalate costs dramatically. Ask for: CAM caps (e.g., "CAM increases limited to 5% annually"), exclusions of capital improvements, and audit rights.
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SaferLease provides AI-powered informational analysis and is not a law firm and does not provide legal advice.