By Toby Burke
NAIOP chapters and members successfully advanced the interests of commercial real estate by engaging lawmakers at both the state and local levels in 2025. Their advocacy ensured that their voices were heard, resulting in several policy outcomes that will spur commercial development, create jobs and strengthen a transforming economy. These outcomes were influenced by NAIOP’s involvement in the legislative process.
Following their day at the state capitol, where they educated lawmakers on the interest of commercial real estate, NAIOP Utah achieved a major victory with the passage of Senate Bill 132. The legislation included the chapter’s top legislative priority by allowing for “closed private generation systems” to generate the electricity needed to service development projects. As in other states, the absence of a reliable and sustainable supply of energy to meet current and future demand is affecting commercial development as Utah’s population and economy continues to grow.
In Florida, the collective advocacy of the five chapters over several years cannot be overlooked with the state legislature eliminating the statewide business rent tax on commercial leases earlier this year. The tax hindered economic growth and undermined the state’s competitiveness in attracting private sector investments to the Sunshine State. In addition, the elimination of this oppressive tax will provide financial relief for tenants dealing with the rising costs of doing business.
The Nashville chapter also successfully advocated this year for the passage of House Bill 636, the Real Estate Infrastructure Development Act of 2025. The legislation allows cities, counties and metropolitan governments to create infrastructure development districts for commercial developments and subdivisions. These districts will help fund new infrastructure, including roads and utilities, by allowing developers/property owners to pay infrastructure costs over time.
There were policy successes at the local level this year as well. Mecklenburg County voters in North Carolina approved a tax referendum in November that establishes a one-cent sales tax dedicated to funding rail, transit and road projects. NAIOP Charlotte and its members played a pivotal role in the outcome by supporting a grassroots informational campaign, hosting association-sponsored discussions, encouraging town hall and community meetings, and participating in voter outreach. The adoption of the referendum will provide additional transportation and infrastructure funding to address the region’s continued growth.
Effective advocacy of the chapters in educating lawmakers on policies is not always based on the adoption of legislation, but also policies that fail to be implemented. This was the case in Minnesota. Minneapolis Mayor Jacob Frey vetoed an ordinance – passed by city council with little to no public input – that would have established a 60-day notice period for the city and tenants before a building owner could place a property on the market for sale. NAIOP Minnesota and other stakeholders took action to educate the mayor on the unnecessary regulatory burdens of the ordinance that would deter commercial real estate transactions. Their engagement and advocacy paid off with the mayor’s veto.
These are just a few examples of how NAIOP chapters’ advocacy impacted policy initiatives in the past year. There were also others, including the defeat of anti-warehouse legislation in New Jersey and Oregon.
Chapters and members must remain engaged and at the table advocating for commercial real estate in 2026 as well. This will ensure that the industry’s interests are taken into consideration as lawmakers return to their respective legislative chambers. As long as state and local governments can pass legislation and change the rules, NAIOP’s engagement in the process is imperative.
