The commercial real estate landscape is hinging on the ‘home stretch’ of this year’s election campaign. Major legislature in the ballot includes Prop 15 and Prop 21, which Bisnow.com reports, may cause ripple effects concerning small-business/property owners.
It’s a closer call now— for CRE’s No. 1 target on the ballot—than ever before.
“Proposition 15, which would raise taxes on commercial and industrial property by taxing based on current market value, was favored by 51% of voters in the latest poll by the Public Policy Institute of California, conducted between early and mid-September and including 1,700 California residents.”
“Meanwhile, Prop 21, would allow cities to pass rent control laws on units at least 15 years old.”
Prop 15 had an initial approval rating of 53% in early April, but experienced a subtle decrease to 51% in the latest poll by Public Policy Institute of California who conducted the poll in Sept. In a study conducted by UC Berkeley Institute of Governmental Studies, Prop 21 showed 37% voter-support, 37% opposition, and 26% indecision.
Opposers of Prop 15 state that it’s simply a measure under the guise of targeting big-businesses. However, with small-business owners often holding triple net leases under these big-businesses, the burden eventually comes to rest on the mom-and-pop.
“What voters end up deciding for the measure, which Hime has told Bisnow is CRE’s “No. 1 target,” is still up in the air. The UC Berkeley survey, which was taken around the same time as PPIC’s, found only 49% of almost 6,000 likely voters saying they intend to vote yes on Prop. 15. The authors of that study say it has a sampling error of plus or minus 2%, while PPIC’s margin of error is plus or minus 3.5%.”