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Thank you both to Grant and Todd for your very informative and great presentation. You mentioned that the landlords do watch out or "screen" for the types of "undesirable" or "unsuitable" yet business-legal tenants like call centers, etc. My question is that if these types of tenants, not very preferable to the landlord, but are actually financially qualified and readily agree to the general lease terms, can the landlord still legally refuse granting a lease? If yes, what legal basis can the landlord state for this refusal?

Call centers often have very high density and tend to use a disproportionate amount of common area parking, utilities etc. and thus are disfavored in an office setting. My answer to whether a landlord can refuse such a tenant may differ depending on which state you are in but in California, for example, one can refuse to lease to a call center for example. In California, generally a commercial landlord can refuse to lease space to anyone but there are important limitations. The landlord is not required to justify their decision to refuse to lease to a prospective tenant. They can base that decision on business reasons (e.g., creditworthiness, business type, prior history, etc.). However, despite the broad discretion, landlords cannot base their refusal on unlawful discrimination, even in commercial settings. This includes: • Federal Law (Civil Rights Act, ADA, etc.): Prohibits discrimination based on race, color, religion, sex, or national origin. The ADA also imposes certain accessibility obligations. • California’s Unruh Civil Rights Act (Cal. Civ. Code § 51): Applies to “all business establishments,” including commercial landlords, and prohibits discrimination based on race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sex, gender, gender identity, sexual orientation, citizenship, primary language, or immigration status. So, while the landlord can choose not to lease to a prospective tenant for most business or personal reasons, they cannot lawfully refuse to lease based on protected characteristics.