Governed by state law, local governments normally can’t exert control over commercial leases. But having been enabled by an Executive Order issued by Governor Newsom back in March (N-28-20), and then extended in June, San Francisco was able to enact an eviction moratorium for small and medium-sized businesses (defined as businesses with up to $25 million in pro-rated gross receipts last year) which have been directly impacted by the pandemic.
San Francisco’s initial 30-day order has since been extended six times. And since March 17 of this year, landlords have been unable to recover possession of commercial spaces occupied by businesses that have continued to qualify under the order due to any missed or delayed rent payments.
But unless Governor Newsom extends the State’s Executive Order, which is set to expire at the end of this month, San Francisco’s commercial eviction moratorium will expire on September 30. And unlike San Francisco’s moratorium on residential evictions, landlords will not be restricted from evicting businesses for past due rents, with a one-month grace period to cure, once the commercial moratorium expires.