By Dan Kennedy
Gov. Mikie Sherrill took office with a clear mandate from New Jersey voters: make the state more affordable, more efficient and more competitive. For the commercial real estate (CRE) industry, that message matters because growth does not happen in a vacuum. It relies heavily on public policy that allows projects to move forward, capital to be deployed with confidence and employers to expand in places where workers can live, commute and thrive.
The governor’s transition reports and early executive orders suggest an administration that understands this connection. Taken together, they reflect a recognition that housing supply, energy affordability, permitting efficiency, infrastructure reliability and economic opportunity are all part of the same equation. The responsibility now in front of us is to convert this early optimism into practical action that supports sustained alignment between land use, infrastructure and economic development so that public and private capital are working toward the same goals.
A welcome governing agenda
The strongest theme emerging from the transition process and the leaders chosen to lead major aspects of state government is a focus on execution. The transition reports point to a state that needs more housing production, more predictable approvals and more effective coordination across agencies. They also underscore the importance of workforce opportunity, business growth and redevelopment as tools for broad-based economic progress. For the CRE industry, we need development policy judged not by slogans, but by whether it produces jobs, expands the tax base and improves quality of life.
This matters more in a state like New Jersey, where limited land, aging infrastructure and high costs create real constraints. However, those constraints also make smart policies more valuable. When the state streamlines approvals, encourages redevelopment and supports investment in the right places, it can unlock projects that are both financially viable and community enhancing. That is the essence of responsible development, dare I say smart growth.
Early executive actions
Gov. Sherrill’s first group of executive orders reinforced that approach. Her administration moved quickly to address electricity affordability, accelerate new power generation and streamline regulatory processes. Those are not abstract policy themes. They speak directly to agency accountability, project timelines and the long-term reliability that developers, tenants and investors need to make decisions with confidence.
The speed of those actions is critically important. In a market where uncertainty can delay construction, increase financing costs and slow job creation, this focus sends a signal that this administration wants to lower friction and improve the state’s overall business climate. That is encouraging for every sector that depends on a stable policy environment, especially CRE.
CRE industry is ready to step up
We are ready to inform the next phase of implementation. The right policy mix will not come from one agency, one report or one order alone. It will come from consistent follow-through and a willingness to align state actions with market realities.
CRE leaders are ready to roll up their sleeves to implement stated priorities, including:
- A faster, more predictable state permitting process with clear timelines and stronger interagency coordination that sets a standard to be followed in the future by local governments of all sizes
- Expanded support for redevelopment of underutilized properties into new uses for today’s market — including those formerly great suburban office parks and retail centers that have great potential to be reimagined
- Transit-oriented development that builds on existing infrastructure and helps connect housing, employment and mobility — including executing on NJ Transit’s innovative LAND Plan
- Energy policy that improves supply options, affordability and reliability while supporting long-term and voluntary investment in resilient buildings and infrastructure
- More opportunities for small, midsized and emerging developers to participate in the state’s growth agenda.
In addition, Gov. Sherill has an immediate opportunity to redirect several regulatory proposals (not yet adopted) from the last administration that clearly do not match her vision for the state. She should direct her cabinet members to have these outstanding proposals sunset without adoption. In addition, a generous amount of scrutiny must be applied to all rules adopted in the final hours of the last administration.
Why this all matters
For NAIOP NJ members and the broader development community, the central issue is now and will always be predictability. Capital flows to markets where risk can be understood and projects can be approved, built and leased without unnecessary delay. When New Jersey improves its regulatory process, enhances energy reliability and supports smart growth, it improves the investment climate for office, industrial, multifamily and mixed-use assets alike.
Just as important, responsible development delivers benefits that extend beyond the project site. It creates construction jobs, supports local vendors, broadens the tax base and brings needed activity to communities that want reinvestment. When done well, it also supports environmental goals by encouraging cleanups and reuse of already developed land, reducing sprawl and making better use of transit and infrastructure.
That is why the early direction from the Sherrill administration is not just worth watching closely but worthy of our assistance. Given the spring season, let’s consider a baseball analogy. We have only played the first few series of a long 162-game season. As a lifelong Mets fan I have trained myself to say — it’s early so let’s not get too excited. Same rules apply here.
Those of us that have seen and heard it all before, we know that other governors have come out of the gate strong with similar goals, with limited sustained progress made. I fully understand the cynicism that exists given the practical barriers that have too often slowed CRE progress in New Jersey and the long list of elected leaders that have failed to execute on great ideas. The truth is the path to progress will require sustained, hard work, and it is going to be a grind.
A moment for partnership
I believe this is a moment for partnership between the administration and the private sector. The state has a chance to make New Jersey more competitive by reducing avoidable delays, unlocking underused assets and supporting investment that meets today’s market demand. The CRE industry is ready to engage constructively, bringing data, project experience and policy ideas that help translate the governor’s stated priorities into results on the ground.
In the end, the measure of success will not be the number of announcements or the volume of policy language. It will be whether New Jersey becomes a place where projects move efficiently, employers grow confidently and communities see visible benefits from well-planned development. Gov. Sherrill’s opening reports and executive orders suggest a recognition of that challenge. The next step is to turn that recognition into action.
Dan Kennedy is CEO of the New Jersey chapter of NAIOP, the Commercial Real Estate Development Association, which is the state’s leading organization for owners, developers and related professionals in office, commercial, industrial and mixed-use real estate. He is a licensed professional planner with a MCRP from Rutgers University’s Edward J. Bloustein School of Planning & Public Policy and a B.S. in environmental science from the University of Delaware.
