Over the next two weeks, scores of NAIOP members and chapter staff from across the nation will be busy scheduling meetings with their U.S. senators, representatives and important staff from these offices in conjunction with NAIOP’s annual legislative “fly-in” to Washington, D.C. They will be coming to the nation’s capital to attend NAIOP’s 2026 Chapter Leadership and Legislative Retreat, to be held from Feb. 2-4, where many will do more than lobby their federal representatives on issues important to the commercial real estate industry. NAIOP members attending CL&LR will also come together to share best practices, talk about common issues they may be facing in their local markets, and educate other members on new challenges that may come their way, based on their own recent experiences. With more than 300 attendees participating this year, CL&LR 2026 promises to be particularly impactful.
Of course, the culmination of the conference occurs on Wednesday, Feb. 4, our Capitol Hill Day. NAIOP members and chapter local executives will be headed to Capitol Hill for their scheduled meetings with Senate and House members and their staff. One of the major goals of these visits is to educate policymakers on NAIOP’s national priority federal issues. This year, our focus will be on three priority issues:
- Adaptive reuse incentives and housing affordability. NAIOP members may recognize this as a topic on which we engaged with Congress over the last couple of years as high office vacancy rates persisted in the aftermath of the COVID-19 pandemic and the related increase in work-from-home patterns. While many employers have mandated return-to-office policies, the impact on many Class B and C buildings in terms of reduced occupancy has persisted, with demand largely shifted to Class A trophy buildings. At the same time, the availability of affordable rental housing has been worsening over the last few years.
In response, NAIOP worked with Representatives Mike Carey (R-OH) and Jimmy Gomez (D-CA) to introduce the Revitalizing Downtowns and Main Streets Act (H.R. 2410) to incentivize the adaptive reuse of vacant and underutilized commercial buildings for residential purposes. The bill would create a tax incentive to offset 20% of the eligible conversion costs resulting from adapting an underutilized commercial building (office, industrial or retail) into housing, a certain component of which would be dedicated to affordable housing. Enactment of a conversion tax credit would give localities an added tool to increase the supply of affordable rental housing, while reducing the probability that many outdated or noncompetitive commercial structures will become stranded assets. In their Hill meetings, NAIOP members will be providing officials and their staff with an “Adaptive Reuse and Housing Affordability” one-pager.
- Meeting the increased demand for electricity. Throughout 2025, NAIOP’s advocacy team met with federal officials to highlight our concern over the future availability of electricity to power both the growth in the use of artificial intelligence and needed commercial real estate development. Media reports have become common regarding the increase in utility prices the public can expect to pay as a result of the enormous power demands of the data centers that will be required over the next decade, leading to strong opposition and calls in some states for data center development bans.
The increased demand for electricity will also inevitably serve as a brake on many commercial real estate development projects competing for the limited electricity resources that utilities can currently provide. Congress must pursue comprehensive energy policies designed to meet electricity demand throughout the U.S. economy. Increased investment in electrical grid expansion and modernization, permitting reforms for energy production and transmission projects, and other measures that would enable increased electrification are needed. In their Hill visits, NAIOP members will be providing officials and their staff with an “Electrification and Energy Policy” one-pager.
- Transportation and infrastructure funding. Modern and efficient transportation systems sufficient to meet the needs of our states and localities are a key ingredient for vibrant commercial real estate markets. The five-year authorization for federal surface transportation programs expires on Sept. 30, 2026. In some past instances, Congress has delayed long-term reauthorization of surface transportation programs, opting for short-term continuations. However, major projects, the construction of which can span several years or even decades, require long-term funding commitments.
Congress should work to pass its multiyear transportation reauthorization early in the year well before their expiration, in order to provide local governments with the funding certainty needed to undertake the planning and development of major projects. Realistic funding levels reflecting the impact of inflation, the increased number of electric vehicles, and other relevant factors must be taken into account to ensure a forward-looking surface transportation reauthorization. In their Hill visits, NAIOP members will provide officials and their staff with a “Transportation and Infrastructure” one-pager.
NAIOP members, through their visits to Capitol Hill educate federal legislators and their staff on issues important to the commercial real estate industry. More importantly, they highlight for legislators that these issues are important to the constituents they represent. These CL&LR meetings help to open the door for NAIOP’s federal advocacy team to continue advocating with these offices throughout the year, increasing the association’s impact with policymakers.
