Page 22 - RE-NJ

20 SUMMER 2025
POLICY
PAGE
SHAPING THE FUTURE:
TOP CRE POLICY PRIORITIES FOR
NEW JERSEY’S NEXT GOVERNOR
By Dan Kennedy
As New Jersey prepares to elect
its next governor, NAIOP NJ, the
commercial real estate development
association, has published a
comprehensive roadmap for
economic revitalization and
sustainable development for the
consideration of both candidates
for governor. As a nonpartisan
organization, we did this early in
the general election cycle to ensure
that both candidates have a fi rm
understanding of the value of CRE
statewide.
NAIOP NJ’s core purpose is to
position CRE leaders for success as
they develop and/or redevelop real
estate projects that have a positive
impact on communities throughout
the state. We need New Jersey’s
next governor to know from “day
one” that when CRE projects are
designed, fi nanced and constructed
at a pace that meets market
demands, the entire state sees the
benefi ts.
Working with our leadership group,
we have set key policy priorities
that we believe should guide the
next administration as they operate
the executive branch, engage with
the Legislature and with leaders in
local government.
WHY COMMERCIAL REAL
ESTATE POLICY MATTERS IN
NEW JERSEY
New Jersey is uniquely positioned at
the heart of the Northeast corridor,
with access to major transportation
networks, world-class ports and
proximity to major urban centers.
However, high operational costs,
outdated infrastructure and
inconsistent regulatory practices
threaten the state’s competitiveness
in attracting real estate investment.
With CRE driving billions in
economic impact annually, getting
state-level policy right is not just
important — it’s essential for
long-term growth, job creation and
community resilience.
Here is what we believe that next
governor should do starting day
one:
1. RESET ENGAGEMENT
WITH THE CRE SECTOR —
COLLABORATIVE LEADERSHIP
IS KEY
One of the most critical priorities is
improving the relationship between
state agencies and the private
development sector. NAIOP NJ calls
for the next governor to:
• Appoint experienced, market-
savvy leaders to state agencies
who understand New Jersey’s
diverse economic regions
and avoid “one-size-fi ts-all”
regulations.
• Reinforce regional planning
efforts that support local zoning
instead of overriding municipal
authority.
• Resist NIMBY (Not In My
Backyard) pressures that hinder
not just essential logistics and
industrial development projects
but also projects that meet market
and affordable housing needs.
• Ensure modern and in-person
state and local regulatory
services, especially for
permitting, to accelerate project
timelines and reduce pandemic-
era backlogs.
2. REFORM LAND USE
REGULATIONS FOR
ARE YOU A STAKEHOLDER IN
NEW JERSEY’S CRE INDUSTRY?
Join NAIOP NJ’s advocacy
efforts to shape the next
administration’s priorities.
Learn more about how to get
involved at naiopnj.org.
PREDICTABILITY AND SPEED
Bureaucratic red tape remains a
top concern for developers and
investors. Streamlining state,
regional and municipal regulations
can unlock signifi cant value.
Actionable regulatory priorities
include:
• Promote science-based reforms
in land use and infrastructure
rules to avoid investor uncertainty
when reforms are driven by
pseudo-science mixed with
political agendas.
• Expand third-party review
options for local and state-level
plan approvals using licensed
engineers and architects.
• Conduct a full review of DEP
policies, especially how recent
rules impact affordable housing
and redevelopment feasibility.
• Embrace the State
Development & Redevelopment
Plan to give municipalities and
developers clear direction on
priority development zones.
• Modernize the Municipal Land
Use Law to reduce delays, lower
application fees and eliminate
frivolous challenges.
3. OVERHAUL NEW JERSEY’S
ENERGY POLICY
Energy infrastructure has become
the cornerstone of modern
economic development, particularly
for energy-intensive industries
like data centers, advanced
manufacturing and logistics.
Key recommendations:
• Move beyond just
electrifi cation, and pursue a
diversifi ed, reliable energy mix
that supports growth without
driving up costs.
• Accelerate renewable
integration, such as community
solar initiatives that have shown
measurable success in industrial
settings.
• Modernize grid infrastructure
to accommodate future demand,
especially for specialized facilities
like cold storage and quantum