For decades, the world of commercial real estate in San Diego County felt a bit like the Wild West. While residential tenants enjoyed a robust safety net of protections, commercial tenants: from the corner coffee shop in El Cajon to the nonprofit center in North Park: were often left to fend for themselves against complex leases and sudden rent hikes.
In 2026, the landscape has shifted permanently. The Commercial Tenant Protection Act (SB 1103) is now in full effect, and it has completely rewritten the rules for how landlords and small business tenants interact. If you are a property owner or a small business operator, continuing with "business as usual" is one of the most expensive mistakes you can make this year.
Whether you are navigating a potential dispute or just trying to stay compliant, understanding these new obligations is essential. If you find yourself in a bind, reaching out to an experienced commercial eviction lawyer is the best way to protect your interests. You can reach the Law Office of Andrew H. Griffin, III at 619 853-3009 or through our contact page.
Do You Qualify for These New Protections?
The first mistake many people make is assuming SB 1103 applies to everyone. It doesn't. These protections are specifically designed for "Qualified Commercial Tenants" (QCTs). In the eyes of California law, a QCT is a tenant that provides a written self-attestation that they fall into one of these categories:
- Microenterprises: Businesses with five or fewer employees.
- Small Restaurants: Establishments with fewer than 10 employees.
- Small Nonprofits: Organizations with fewer than 20 employees.
If you are a tenant, you must provide this attestation to your landlord to trigger your rights. If you are a landlord, you need to know exactly who in your building qualifies, because your legal requirements for them are now much stricter than they are for a large corporate chain.
The End of the 30-Day Rent Shock: The 90-Day Rule
In the past, if you were on a month-to-month commercial lease in San Diego, a landlord could often raise your rent with just 30 days' notice. For a small business operating on thin margins, a 15% or 20% increase in 30 days is often a death sentence.
In 2026, those days are over for Qualified Commercial Tenants. Under SB 1103, notice requirements have been extended to give you more breathing room:
- Increases of 10% or less: The landlord must still provide at least 30 days' written notice.
- Increases of more than 10%: The landlord is now required to provide at least 90 days' written notice.
This extra time is vital. It allows you to pivot, renegotiate, or find a new space without the immediate threat of a commercial eviction. For landlords, failing to give the proper notice window can invalidate the rent increase entirely, leading to costly legal delays.
Common Area Maintenance (CAM): No More "Mystery Math"
Perhaps the most common source of friction between landlords and tenants in San Diego is the "triple net" lease or the pass-through of operating expenses. For years, tenants would receive a bill for Common Area Maintenance (CAM) with little to no explanation of how those numbers were calculated.
SB 1103 brings a new era of transparency to landlord-tenant relationships. As of 2026, landlords have specific transparency obligations regarding operating costs:
- Proportionate Allocation: Costs must be allocated fairly, usually based on square footage, and the method must be documented.
- The 18-Month Rule: Landlords can only charge for costs incurred within the previous 18 months or reasonably expected within the next 12 months.
- Right to Inspect: Tenants now have a statutory right to request and inspect supporting documentation for these costs.
Landlords must now provide an itemized list of expenses and a signed attestation certifying that the costs are true and correct before they can collect them. If you are a landlord and your lease agreements haven't been updated to reflect these transparency requirements, you could be opening yourself up to significant liability.
The Translation Requirement: Breaking Language Barriers
San Diego and El Cajon are home to incredibly diverse business communities. From Spanish-speaking entrepreneurs to Vietnamese and Arabic-speaking shop owners, the local economy thrives on its diversity.
One of the most significant changes in SB 1103 is the language translation requirement. If a commercial lease is negotiated primarily in a language other than English (specifically Spanish, Chinese, Tagalog, Vietnamese, or Korean), the landlord must provide a translated version of the lease to the tenant.
This rule applies if the tenant did not use their own professional interpreter during negotiations. This is a massive shift. In the past, many small business owners signed English-language contracts they didn't fully understand. Now, if a translation isn't provided, the lease could be challenged in court. This is a critical area where eviction attorneys in San Diego are seeing a lot of activity, as it provides a strong defense for tenants who were not given a fair chance to understand their obligations.
Why San Diego Property Owners and Tenants Need Local Expertise
While SB 1103 is a state law, its impact is felt most acutely at the local level. In San Diego, where many commercial properties are older and owned by individuals rather than large corporations, the risk of non-compliance is high.
Landlords who fail to cap security deposits at one month’s rent for QCTs or who miss the new 60-day termination notice requirement for long-term tenants can find themselves in a legal nightmare. Conversely, tenants who don't know how to properly "self-attest" to their QCT status may miss out on the very protections designed to save their businesses.
At the Law Office of Andrew H. Griffin, III, we bring over four decades of experience to these issues. Because Andrew Griffin is also a licensed California real estate broker, our firm understands both the legal technicalities and the practical realities of the San Diego real estate market. We help you navigate these 2026 rules so you can focus on running your business or managing your property.
Notes for Business Owners
If you are a commercial property owner in San Diego, you should immediately audit your current tenant roster. Identify which tenants might qualify as "microenterprises" or "small restaurants." Ensure your 2026 lease renewals include the required SB 1103 disclosures and that your CAM billing practices are fully transparent and documented. A mistake here isn't just a clerical error: it can be an affirmative defense that stops an eviction in its tracks.
Facing a Commercial Lease Dispute? We Can Help.
The new rules of 2026 don't have to be a source of stress. With the right preparation and legal guidance, you can ensure your commercial relationships are stable and compliant. Whether you are a landlord needing to update your lease forms or a tenant facing an unfair rent hike, we are here to provide the clarity you deserve.
It is normal to feel overwhelmed by shifting legislation. Many people believe that commercial leases are "set in stone," but in reality, new laws like SB 1103 frequently override existing contract terms to protect small businesses.
Don’t wait for a small misunderstanding to turn into a major lawsuit. Contact a qualified commercial eviction lawyer today to review your situation.
Law Office of Andrew H. Griffin, III, APC
619 853-3009
https://www.andrewgriffinlawoffice.com/contact/