Regulatory Issue Impact on CRE
NAIOP is talking with some of the industrial leaders who will be leading the conversation this June at I.CON: The Industrial Conference. Troy Briggs, regional director of development and investments (Northeast) with Goodman Birtcher, sat down to talk about how the regulatory environment is impacting CRE and how it will ultimately shape the industry.
NAIOP: What state is most impacted by regulatory issues, and what are businesses in the state doing to counteract them?
Briggs: New Jersey is as impacted as much, if not more, than other states by regulatory issues. Businesses are attempting to work with government to find ways to either change regulations in ways that make sense or to find creative cost effective ways to comply. Creative use of existing tools, like the redevelopment process, may ease the burden in some instances. In other areas, businesses are working with state regulators to find a better path through the permitting process.
NAIOP: What are the top three regulatory issues that will impact industrial real estate?
Briggs: Three issues come top of mind: (1) New Jersey’s home rule system, which creates different levels of approval and adds time and expense to the process; (2) The impacts on development following the updating of FEMA maps and its impact on regulators. There is a great deal of confusion over the maps and how they apply. (3) Site remediation requirements and how they are implemented at particular properties i.e. (ground water, wetlands, storm water, soil, etc.).
NAIOP: Can you share an example of how real estate has effected positive change on a regulatory issue?
Briggs: The real estate development community in New Jersey was one of the driving forces behind the adoption of the Site Remediation Reform Act, which created the NJ Licensed Site Remediation Professional program. This enabled developers to better control the timing and costs of remediation, speeding up the cleanup and redevelopment of brownfield sites.
Hear more from Briggs and a venerated panel of industrial experts discussing Regulatory Environment and its Effect on Development at I.CON ’15, June 10-11, in Long Beach, California. See the conference website for details on who attends, hot sessions, and project tours.
Kathryn Hamilton, CAE, is Vice President for Marketing and Communications at NAIOP Corporate.